Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Homebuilders Nearing Crossroads at Pre-Financial Crisis Highs

Courtesy of Chris Kimble

The latest leg higher for the bull market has been supported by a resilient U.S. economy that continues to climb a wall of worry.

And that theme has carried over to the stock market. This has helped stocks rise over 20 percent in 2019.

One core piece of the economy is the housing market. This shows up in sector ETFs like the Homebuilders (XHB).

After retesting the 2006 pre-financial crisis highs in early 2018, the Homebuilders fell sharply over throughout the year. But 2019 has been a different story (see chart below).

The rally in 2019 has helped the broader stock market move higher and has the Homebuilders testing their financial crisis highs once again at point (1).

A breakout here would send a strong bullish message… but the pattern is that of a rising wedge, which can be quite bearish if trend-line support is broken.

If support breaks at point (2), the Homebuilders (XHB) would send a concerning message to the sector, economy, and the broader stock market.

This chart was originally written for See It Markets.com. To see the original article, CLICK HERE

To become a member of Kimble Charting Solutions, click here.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!