Those investors that weren’t aware of this divergence most likely missed a key signal from a very important industry!
Is an important signal from the housing industry being sent again? Patterns suggest yes! The Index looks to have “Double Topped” at (1) of late, where selling pressure immediately started taking place.
The selling pressure this month in the housing index and the S&P 500(NYSEARCA:SPY) has both breaking below the lows of 2018. The “Monthly Closing Lows” levels are highlighted at each (2).
Where each index closes at the end of the month, will send very important long-term messages.
Bullish message by both = Each index closes the month above the December 2018 lows, creating higher lows/double bottoms.
Bearish message by both = Each index closes the month below the December 2018 lows.
Keep a close eye on monthly closing levels by each index friends, we will receive key messages!