Lumber Price Peak Would Raise Concerns For Equities!

by Kimble Charting

The supply chain has dealt with several issues over the past couple of years, as consumers and businesses have been forced to navigate a tricky “COVID” landscape.

Commodity prices (in general) have risen, while enduring some big swings.

Today we look at a commodity that plays an intricate role for consumers, and perhaps the equities market as well. Lumber. When lumber prices are high, new homes and buildings cost quite a bit more.

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Above is a “weekly” chart of lumber prices. As you can see, there have been times when a lumber peak/bottom have been important for equities (S&P 500 Index). Lumber prices have recently rallied back to the 61.8 Fibonacci retracements of the past years high-low at (1) and appear to be turning back down.

Stock bulls might be hoping that lumber is not topping at (1)! Stay tuned!!

This article was first written for See It Markets.com. To see the original post CLICK HERE.

 

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