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It would be an understatement to say Real Estate is important to any economy. DJ Home Builders formed a bearish pattern back in 2007, then broke support and this index and the broad markets fell hard.
The last decline of 15%+ in the S&P 500 took place in 2011, when the Home Builders broke support of the bearish rising wedge.
Of late the Home Builders broke support of another bearish rising wedge after hitting an important Fibonacci resistance line.
Joe Friday… For the broad market to continue moving into record high levels, it needs the DJ Home Construction index needs to turn around and head higher from here!