Let's take a look at the developing pattern in the Homebuilders ETF (AMEX: XHB), as some of its components, like PHM, DHI, NVR, RYL, HD exhibit charts with meaningful upside technical potential.

My extreme near-term work argues that the XHB pullback from Friday's high at 21.21 into the morning's low at 19.00 is complete, within the larger January upleg. With my pattern and momentum work indicating that the initial upleg off of the 1/09 low at 15.22 still has some unfinished business on the upside, my sense right here is that the XHB has just started another rally that will hurdle Friday's high on the way to the 22.00-23.00 (next) target zone.