The iShares Trust DJ US Real Estate ETF (ARCA:IYR) is up almost three times as much as the S&P 500 Year-to-date, a rally that has taken IYR up to a falling resistance line, drawn off its 2006 highs.
The Dow Jones Home Construction is rather soft as well and is hitting a key resistance line (inset chart).
A breakout above resistance would be a good sign, as it would be a change from a series of falling highs. We are all aware just how important this sector is to most people and the macro economy.
Is Real Estate at a key inflection point? The Power of the Pattern believes it is.