priceactionguru
Short

Housing stocks and S&P 500 diverge

SPCFD:SPX   S&P 500 Index
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.
Comment: Homebuilder stocks continue to decline.
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