S&P (blue) has diverged from housing stocks which peaked in late Jan 2018.
Homebuilders are continuing to decline.
While new homes sales are only 5% of GDP, the downstream purchases that are associated with new home sales (home appliances, furniture, various house updates, and electronics) account for 25% of GDP.
It is possible the slowing down of new home sales will drag on the S&P, but will not trade on supposition, will trade what I see once the price action is more developed.
Also keep an eye on Home Depot as it will start pulling back if homebuilder stocks continue to decline.
Homebuilders are continuing to decline.
While new homes sales are only 5% of GDP, the downstream purchases that are associated with new home sales (home appliances, furniture, various house updates, and electronics) account for 25% of GDP.
It is possible the slowing down of new home sales will drag on the S&P, but will not trade on supposition, will trade what I see once the price action is more developed.
Also keep an eye on Home Depot as it will start pulling back if homebuilder stocks continue to decline.
Note
Homebuilder stocks continue to decline.
Plan your trade and trade your plan.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Plan your trade and trade your plan.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.