The Economically Sensitive Homebuilders Stand at a Key Juncture
- The S&P 500 traded in an incredibly tight range yesterday. We don’t expect that to last for long. Bond yields are testing a key resistance level, so their next big move could/should have a compelling impact on the stock market.
- The next big move in the bond market should also have an important impact on the economically sensitive home building stocks. They have been trading in a sideways range for almost two months now. Whichever way it breaks out of this range should tell us a lot about the economy and the broad stock market going forward.