NAHB Housing Index as leading indicator of stock market

Below is the graph of NAHB Housing Index and S&P500 ( the index is offset with 2.5 years back and  divided by 20 for visualiazation purposes) based on the offset and almost perfect correlation we can expect that current stock market rebound to be a DEAD CAT BOUNCE and more staggering market declines in the future . Based on current relations, recent NAHB lows correspond to future values of S&P500 well below 400.



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