This afternoon, the leading home-builder stocks are all rebounding from yesterday’s sharp sell off. The SPDR S&P Home-builders ETF is trading higher by 0.46 cents to $19.52 a share. Short term traders should watch for intra-day resistance around the $19.78 level. Traders must remember, this bounce is likely to be short term as the XHB broke below a key support level yesterday with heavy volume around the $19.00 area. The XHB has also made a series of lower highs since early May 2012 which is a negative sign for the ETF in the near term.
Some leading home-builder stocks that are trading higher today include Lennar Corporation (NYSE:LEN), The Ryland Group Inc (NYSE:RYL), and Toll Brothers Inc (NYSE:TOL). All of these stocks look to be trading in lockstep with each other today, therefore, the XHB intra-day resistance levels should be resistance for these home-builder stocks as well.
