The market has been under pressure all session long and the downside move picked up steam. March New Home sales saw an 8.6% decline against consensus -0.6%.  Prices continue to surge with the average selling price of $523,900 but supply leaped to 6.4 months from 5.6 months.

Supply up and prices up cannot be sustained.  At some point the former will curb the latter, especially as sentiment erodes.

Supply Chain Issues

China’s inability to curb Covid-19 has many wondering if there could be massive lockdowns in Beijing.   It’s frustrating for sure and a big reason GE is the worst performer on the S&P 500 today.

Continuing its long decline from the most valuable company in the world, and shining example of American exceptionalism, the company just cannot get its act together.

I want to see the S&P 500 hold above 4,200 and then after the close all eyes are on Microsoft (MSFT) and Alphabet (GOOG).