Lumber and the Homebuilders ETF (XHB) traded, essentially, in the same directions from mid-2010 until October 2014 — when Lumber suddenly took a nosedive down to major support at 240, while XHB broke out and rallied — as shown on the following 5-Year Daily comparison chart.
At the moment, it looks as though that support level will be retested, once more. A drop and hold below 240 could very well be the catalyst that breaks XHB’s slightly-sloping (tight) uptrend. And, a drop and hold below 220 could see a very quick, sizable plunge in XHB…possibly slicing through 34.00 down to retest major support around 28.00, or lower.