Housing sector has had an excellent week but may be impacted by the words of our esteemed fed chair when speaking at the Jackson Hole symposium (9.10am kick off). A move over $31.75 would also represent a break of the 200MA. Bough call potential
SPDR S&P Homebuilders have started to roll lower. MACD already negative and we are below MA65 and MA89. RSI also looks bearish.
I wrote back on 5/4 on my blog that "I'm standing by XHB" that I thought the negativity around housing was excessive and higher prices would eventually come our way. Some of the "smart" money on Wall Street was decisively negative. Among the stories predicting the fall in stock prices of the home builders included this one from Friday the 23rd. Big investors...
The extreme divergence between housing and $SPY recently is either a sign that housing with explode higher to catch up soon or that the S&P will sink to fall in line with housing. You decide.
No Primary LL Yet; But Looks Heavy. $ITB
Over $32 or Under $30.50 Will Decide. $ITB $LEN $PHM $RYL $DHI
Bullish Harmonic Bat Pattern with bullish momentum divergences on both stochastic and macd histogram with solid support level. Enter Long @ 31.00 Stop Loss below X point around 30.35 Profit Target is below 'B' point 32.30\ R/R Ratio of 1:2
Just Below at $30-$30.50 $ITB
Failure. $ITB $IYR $LEN $RYL $PHM $TOL $DHI
Off 15-Month TL Support $ITB
Better Than the Bearish Engulfing Post-Open Today.
MACD c/o as well. RSI still aways to go. $DHI $TOL $LEN in plays