S&P (blue) has diverged from housing stocks which peaked in late Jan 2018.
Homebuilders are continuing to decline.
While new homes sales are only 5% of GDP, the downstream purchases that are associated with new home sales (home appliances, furniture, various house updates, and electronics) account for 25% of GDP.
It is possible the slowing down of new home sales will drag on the S&P, but will not trade on supposition, will trade what I see once the price action is more developed.
Also keep an eye on Home Depot as it will start pulling back if homebuilder stocks continue to decline.