On this quiet Sunday, before what promises to be another dynamic trading week, let’s look at a few real-estate oriented ETFs. Starting off, we have the SPDR Homebuilders (NYSE:XHB), which has been carving out a series of lower highs recently. As long as it stays beneath 42.86, this is still a clean downward pattern (we even “teased” a break of the topping pattern already).
The U.S. Real Estate fund (NYSE:IYR) is also terribly interesting has has been stumbling downward ever since December 18th. The key here is to stay below the gap at 77.18.
The Direxion triple-bullish (NYSE:DRN) fund is obviously more volatile than the others, and its own “Houston, we have a problem” level isn’t until 19.04. If the market gods are reading this, I’d appreciate the whole sector starting to weaken, oh, right about now instead. We’ve been in a congestion zone for an entire month at this point.
For me, the key reality is that interest rates have formed an impressive bullish base, and the last time I checked, soaring interest rates and increasingly-large mortgage payments have never done wonders for this particular sector.
FR Mortgage
