Home-builders Rebound

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.

About Nicholas Santiago 575 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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