The supply chain has dealt with several issues over the past couple of years, as consumers and businesses have been forced to navigate a tricky “COVID” landscape.

Commodity prices (in general) have risen while enduring some big swings.

Today we look at a commodity that plays an intricate role for consumers, and perhaps the equities market as well. Lumber. When lumber prices are high, new homes and buildings cost quite a bit more.

Below is a “weekly” chart of lumber prices. As you can see, there have been times when a lumber peak/bottom have been important for equities (S&P 500 Index). Lumber prices have recently rallied back to the 61.8 Fibonacci retracements of the past years high-low at (1) and appear to be turning back down.

Stock bulls might be hoping that lumber is not topping at (1)!

(Click on image to enlarge)