The construction sector is still working in the Basement

A picture means a thousand words, and a chart tells a lot of future. This chart is the index for the construction sector. The construction sector peaked at 1,165 in mid 1999. It has since started digging lower and lower to reach bottom.

For a while, I thought that Construction has already met its low at 144 by 2003, but unfortunately it went on to form an upward wedge. Such formation very seldom break down. Therefore, Construction will continue to dig further down when it breaks down from the wedge. Presently the measuring target is 137. With the crossing of 21 day and 89 days EMA, it is waving goodbye to us. It may still want to climb back up, I believe it will be stopped by the 2 EMAs which presently at the region of 305 and 307.