After new home sales came bad (as I predicted last week), homebuilders stocks (XHB) went back below 200-day average and have all the reasons to stay there. This group is weak enough to drag the rest of the market. It’s only a beginnig of 5-th week of market correction.
Let wait another 3 weeks before we start talking about the bottom. Why? Bacause we have “construction spending” report March 30, ISM indexes in early April and “retail sales” report April 16 – all those numbers will come bad enough to prevent market from rebounding, dragging it down on every report.