From Bespoke Investment Group:
Dow Theory followers have noted recently that the Dow Transports index has failed to confirm the market's uptrend since it isn't at new highs while the Dow Industrial Average is.
But maybe a more worrisome trend this time around is that the S&P 1500 Homebuilder Index has failed to make new highs along with the overall market.
Since the homebuilders led the market lower during the bear and were some of the best performers out of the gate at the start of the bull, this group may be the important one to watch for confirmation of the rally.
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