Lumber Price Peak Raises Concerns For Equities
Chris Kimble | Jan 28, 2022 03:03PM ET
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.
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.
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