Yesterday on Tradespoon Live TV, Joe Cusick (www.tradingblock.com) and I were talking about Home Construction and Existing Home Sales. Joe mentioned that the Permits and New Construction were mixed.
The Exchange Traded Fund that tracks this sector ITB has factored in the potential to move about a $1 for the remainder of the week. This is a ~5% move in the ~$24 ETF. The ETF has been challenging its long-term support, the 200-day moving average, which is right at $24.
A break would put into question the late rally in 2014 and would also put the October 2014 lows as next support. I am still long-term bullish on the sector but the technical’s are flagging some caution for the Home Builders and the sector in general for the short-term.
Have a great trading day!
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