In the words of author Mark Twain, "History doesn't repeat itself, but it often rhymes." This aphorism couldn't be truer for Wall Street.

There are dozens of economic data points, predictive indicators, and performance-based metrics that have, throughout history, correlated strongly with the directional movements of the ageless Dow Jones Industrial Average (DJINDICES: ^DJI), widely followed S 500 (SNPINDEX: ^GSPC), and growth-driven Nasdaq Composite (NASDAQINDEX: ^IXIC). Although the macro events, monetary policies, fiscal policies, and a host of other factors surrounding bull and bear markets of the past are all unique, these correlated moves are examples of history rhyming for the stock market.

Despite the first seven months of 2023 starting off with a bang for the S 500 and Nasdaq Composite, a case of déjà vu for Wall Street regarding the housing industry could bring this party to a screeching halt.

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Source Fool.com