The market drying up and trading volumes declining is also a common end-of-year scenario for investors. Broadcom is no exception, and increased volatility often follows. However, the company beat on earnings, and the current pullback is partly due to the company operating in less active times and in less liquid markets.

According to Fairlead Strategies founder Katie Stockton, the recent weakness in the stock market flashed a technical "sell" signal.

The official Santa Claus rally period as defined in 1972 by Stock Trader's Almanac founder Yale Hirsch includes the last five trading days of the year and the first two trading days of the new year. That means investors can still bid stocks higher tomorrow,