Housing market concerns are bubbling up once again. Remember the 2007 housing bubble?

Well, this may not end the same way, but it’s definitely worth noting the weakness in the housing sector. Especially the homebuilders (via the Dow Jones Home Construction Index).

Take a look at the chart below. Notice the similarities?

• A similar bearish descending triangle to 2007 could be in play
• A similar bearish divergence to 2007 could be in play
• Homebuilders are testing 2007 support this year at (2)

It’s probably fair to say that the broader market wants the Home Construction Index to hold support holds at (2)!!!

Dow Jones Home Construction Index – Bearish Divergence

(Click on image to enlarge)