Housing Market Is Weak

The best leading indicator for housing is mortgage purchase applications and they are lingering at 14 year lows. Today's housing data is misleading. That said, the stock market and the economy are not the same thing. While I am very confident that housing market is weak that does not mean the stock market is a short.

1 comment:

Anonymous said...

I'm not convinced this rally is going to lead to something much bigger.

The volume is very weak. It just feels like a short squeeze.

Because we are near maximum oversold it could tread sideways to a little higher. I'm not expecting this to be the next leg higher to new highs or anything.

We continue to be in a trading range. If we break 1100 we will be closer to the top of that range.