CLICK ON CHART TO ENLARGE
Lumber has traded inside of a channel for the past 20 years.
Each time it has hit the bottom of the channel it has rallied 100% in price. Each time it has hit the top of the channel at (1), it ended up falling 50% in price.
Lumber is now back at the top of this channel, the inset chart (lower left above) reflects a breakdown of a bearish falling wedge. Lumber is limit down today and sentiment is high, over 82% lumber bulls.
Keep a close eye on lumber, because the prior 50% declines happen to be decent leading indicators for the economy and in turn the stock market/S&P 500 declined!