Homebuilders ETF drops despite the bullish ‘golden cross’ pattern set to appear

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March 26, 2019 4:49pm NYSE:XHB

ETF investing

From Tomi Kilgore: The SPDR S&P Homebuilders ETF XHB, +0.08% fell 0.5% in afternoon trade Tuesday, in the wake of disappointing housing data, ironically on the same day that a bullish “golden cross” chart pattern is set to appear. Of the ETF’s 35 equity components, 25 were trading lower. Earlier, data showed that February housing starts dropped a more-than-expected 9% and home price growth slowed in January, to the slowest pace in 6 1/2 years. Meanwhile, a “golden cross” is when the 50-day moving average, a short-term trend guide, crosses above the 200-day moving average (DMA), a longer-term trend tracker. Many chart watchers believe the crosses mark the spot a short-term rally transforms into a longer-term uptrend. The homebuilders ETF’s (XHB) 50-DMA currently extended to $37.377 while 200-DMA was at $37.370, according to FactSet. That would mark the first time the XHB’s 50-DMA was above the 200-DMA since April 20, 2018, and be the first “golden cross” since Jan. 23, 2017. Among the XHB’s more active components Tuesday, shares of D.R. Horton Inc. DHI, -0.88% shed 2.0%, Lennar Corp. LEN, +0.32% gave up 0.7%, Lowe’s Companies Inc. LOW, -0.07% slipped 0.1%, Home Depot Inc. HD, -0.18% declined 0.2% and PulteGroup Inc.PHM, +0.62% lost 0.1%.



The SPDR S&P Homebuilders ETF (XHB) rose $0.03 (+0.08%) in after-hours trading Tuesday. Year-to-date, XHB has declined -13.52%, versus a 5.77% rise in the benchmark S&P 500 index during the same period.

XHB currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #32 of 42 ETFs in the Consumer-Focused ETFs category.


This article is brought to you courtesy of MarketWatch.


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