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Homebuilders Pulling Back from Peak


Homebuilders Pulling Back from Peak
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.

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