Monday, June 21, 2010

Homebuilders - Continued Weakness


Last week I spoke about the weakness in the homebuilding stocks and today we are seeing more follow though on the downside.

The stock market opened higher but the homebuilders were basically unchanged which was a sign that these stocks were under selling pressure. By the end of the day  XHB (homebuilder ETF) sold off to close on its lows taking out last week's low.

In the above chart you can see the accurate 12 day cycle of highs that has been dominating the price action since early May. I'm looking for a re-test of this month's low. 




1 comment:

Anonymous said...

Take a look at the RTH. Also breaking down relative to the market.

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