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By Mike Paulenoff, www.MPTrader.com
The SPDR Select Homebuilders ETF (AMEX: XHB) has gone "red" now after hitting a first-hour high at 13.50 (which we noted on Dec 4 as our first target area), which happens to be 64% above the Nov 21 low at 8.21. The XHB represents the most beaten-down of market sectors (along with the financials), and led on the upside during the Nov-Dec upmove. So it's only reasonable to expect the homebuilders to be among the first of the sectors to peak and pullback. Corrective weakness in the XHB should press into the 12.25-11.80 support area, which should contain the selling pressure ahead of another loop to the upside that should propel the prices above 14.00.
Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!
