House Prices have likely reached a top
Updated
Party's over. Now comes the bill.
Housing prices have experienced an artificial inflated price surge from march 2020 that needs to be corrected.
First target is 345. Using 2008 as reference price index can go as low as 310, to the 0.38 retracement, however back then - from the shock reaction to the bubble bursting - we didn't experience the recession we would have had if the Fed didn't eased the economy, quantitatively speaking, if you know what I mean.
If the Fed lets the house market drive its natural course, and if we experience a deflationary economy in the mean time, I wouldn't be surprised if we went as low as 290 or 260 on a longer term.
DYOR
Housing prices have experienced an artificial inflated price surge from march 2020 that needs to be corrected.
- RSI sell signal
- MACD just crossed the signal and it's bound to change direction.
- Stochastic RSI at virtual 0 also signals a possible change to a bear market that is still yet to occur, which often happens at a second bounce to a lower high.
First target is 345. Using 2008 as reference price index can go as low as 310, to the 0.38 retracement, however back then - from the shock reaction to the bubble bursting - we didn't experience the recession we would have had if the Fed didn't eased the economy, quantitatively speaking, if you know what I mean.
If the Fed lets the house market drive its natural course, and if we experience a deflationary economy in the mean time, I wouldn't be surprised if we went as low as 290 or 260 on a longer term.
DYOR
Note
I may have called it too early but it still stands. See the clear divergence?
Increasing timespan for 3M, the sell signal gets cleare. Stochastic K didn't manage to break through D.
Trend will flip in the next few years
Note
Bearish divergence on MACD
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