2 charts show why the stock market sell-off isn't done yet

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Keith Lerner News

Stock Market,Nasdaq Composite

The stock market rally has started to wobble in July and market strategists believe this could be the start of the average pullback seen in bull markets.

. Over the past 10 days the benchmark S&P 500 is down about 3%, while the Nasdaq is down more than 6%.Truist co-chief investment officer Keith Lerner noted that in years when the S&P 500 has risen more than 10% in the first half of the year, the second half usually sees an average pullback of about 9%."This choppier market action of late, which we have been anticipating, likely has further to go in terms of price and time," Lerner wrote in a note to clients on Thursday.

. Lerner noted that the earnings weren't bad but failed to impress investors, who had a high bar entering this reporting season.in the tech sector. Lerner reasoned that, after the market reset over the past few trading sessions, there's a chance technology's latest swath of earnings can surpass investors' now-trimmed expectations."I think the secular story of this bull market is still intact," Lerner said. "Money will come back there.

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