The housing industry had a very negative impact on the broad market between 2005 to 2008, as the DJ home construction index lost 90% of its value in 3 years. The impact was far reaching.

Since last fall the DJ home construction index has gained 50% more than the S&P 500, reflecting a ton of relative strength over the broad market.

The broad market needs this index to continue higher.  If this index can break resistance at (1) in the above chart, it would be a positive sign for this index and the economy as a whole!

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past