On this quiet Sunday, before what promises to be another dynamic trading week, let’s look at a few real-estate oriented ETFs. Starting off, we have the SPDR Homebuilders, which has been carving out a series of lower highs recently. As long as it stays beneath 42.86, this is still a clean downward pattern (we even “teased” a break of the topping pattern already).
The U.S. Real Estate fund is also terribly interesting has has been stumbling downward ever since December 18th. The key here is to stay below the gap at 77.18.
The Direxion triple-bullish fund is obviously more volatile than the others, and its own “Houston, we have a problem” level isn’t until 19.04. If the market gods are reading this, I’d appreciate the whole sector starting to weaken, oh, right about now instead. We’ve been in a congestion zone for an entire month at this point.
For me, the key reality is that interest rates have formed an impressive bullish base, and the last time I checked, soaring interest rates and increasingly-large mortgage payments have never done wonders for this particular sector.