Well this may not end the same way, but it’s definitely worth noting the weakness in the housing sector. Especially the homebuilders (via the Dow Jones Home Construction Index).
Take a look at the chart below. Notice the similarities?
– A similar bearish descending triangle to 2007 could be in play
– A similar bearish divergence to 2007 could be in play
– Homebuilders are testing 2007 support this year at (2)
It’s probably fair to say that the broader market wants the Home Construction Index to hold support holds at (2)!!!
Dow Jones Home Construction Index – Bearish Divergence
iShares U.S. Home Construction ETF () was trading at $281.05 per share on Thursday afternoon, up $0.04 (+0.01%). Year-to-date, has gained 5.74%, versus a % rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.