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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