Another day and another major economic data release missing Wall Street consensus. The NAHB housing market index in the US extended losses for a seventh month running to hit 55 in July against consensus of 65.  This is the lowest reading since May of 2020.

• Homebuilder Confidence Leveled
• Seven straight months of declines
• Current sales dropped 12 points to 64
• Buyer traffic fell to 37 from 48
• Sales expectations in the next six months declined 11 points to 50

That news stopped an early rally attempt in its tracks.  Remember the Fed has to dramatically slow the housing boom, because that's the largest part of the so-called wealth effect. 

The stalled rally has taken all the air out of investors who have become shellshocked.  It feels like any rally is a suckers rally.  But fundamentals are adjusting, and I think earnings and guidance will be better than anticipated.  More smoke has to be cleared.