Homebuilding stocks are poised to break out of a monthlong holding pattern and extend the year’s biggest gains among U.S. shares, according to Justin Walters, a co-founder and managing partner at Bespoke Investment Group LLC.
Individual investors should be wary of buying stocks now because most Standard & Poor’s 500 Index companies are trading above their average prices for the past 50 days, signaling a short-term retreat, according to Bespoke Investment Group LLC.
U.S. stocks fell, capping the biggest monthly decline for the Standard & Poor’s 500 Index since September, as disappointment with American economic reports overshadowed optimism that Greece will stay in the euro.
The proportion of stocks above their 50-day moving averages rose to the highest level in a year, a sign that the Standard & Poor’s 500 Index’s rally from its 2011 low will last, according to Bespoke Investment Group LLC.
Chinese stocks are showing “signs of life” after the Shanghai Composite Index exceeded its average level from the past 200 days for the first time in almost a year, according to Bespoke Investment Group.