home prices

Existing Home Sales Post A Dismal November

Posted Tuesday, December 22, 2020 by
Shain Vernier • 1 min read

On the heels of disappointing Existing Home Sales (MoM, Nov.) numbers, U.S. stocks are continuing their holiday week slump. At the midway point of the Wall Street session, the DJIA DOW (-112), S&P 500 SPX (-5), and NASDAQ (+23) are mixed. As we move into early-2021, it appears as though fresh COVID-19 concerns and doubts over stimulus package number two are weighing heavily on sentiment.

This morning brought the release of multiple economic metrics. Here’s a quick look at the hard data:

Event                                                                               Actual              Projected           Previous

GDP (Q3)                                                                           +33.4%               +33.1%               +33.1%

Core Personal Consumption (Q3)                                   3.4%                    3.5%                   3.5%

Existing Home Sales Change (MoM, Nov.)                  -2.5%                     -1.0%                   4.4%

All in all, this group of numbers is fairly solid. However, the lagging Existing Home Sales (MoM, Nov.) suggests that consumers are growing hesitant of buying homes at this point in the year. While not a huge surprise given the winter season, this will be a trend to watch as 2021 gets underway.

Existing Home Sales Lag, Stocks And Gold Extend Holiday Week Slump

It has been a wild week on the gold markets, highlighted by whipsaw trading action. Nonetheless, today’s action has been bearish, with prices falling beneath 1875.0 per ounce.

home sales
February Gold Futures (GC), Daily Chart

Here are the levels to watch as we roll into midweek trade:

  • Resistance(1): 62% Retracement, 1894.6
  • Support(1): Bollinger MP, 1860.0
  • Support(2): Daily SMA, 1826.8

Overview: For the time being, it looks like traders are happy on the sidelines ahead of the Christmas break. Sentiment is largely neutral as the markets appear to have priced in stimulus package number two and fresh COVID-19 concerns. Barring a major news release, gold will likely post gains as traders hedge risk as the end-of-year approaches.

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