Housing Crashing: Will Stock Market Follow Down?

Dear Steemit friends,

You have probably noticed that the stock market is not performing well over the last couple of weeks. Some of you might be wondering if the decline in the stock markets is going to continue for a while.

Here, I would like to point out that caution is required at this time in your investments in stock markets. I would like to draw your attention to the performance of housing market stocks (HGX - housing market index).

During the second half of 2018, HGX as well as the general stock market experienced significant gains, pushing the RSI deep into overbought area. Currently, housing index is falling much lower than the general stock market, and there is a possibility that other stocks might follow.

Although, the 10-week RSI on Nasdaq has almost reached oversold level, after staying in deeply overbought for several months, a drop into deeper oversold levels is likely.

Therefore, in my opinion, it is a little risky to invest much into the stock markets at the moment. One possible strategy would be to wait for a bounce out of deeply oversold area before investing.

What is your opinion on the stock market going to the end of 2018? Share your opinion in the comments, and I would be glad to upvote them.