Housing Stocks Get Hit

I meant to post about the housing stocks yesterday but I just didn't have the time and then I simply forgot about it.

What I noticed yesterday was that the the S&P was basically flat for the day but the homebuilders were all down. That to me was a sign that a move lower was about to take place.

If you look at the above chart you'll see a nice bear flag formation which projects a downside target of about 200 for the HGX.