While select technology and semiconductor stocks have had a profound effect on the stock market rally, another less sexy sector has quietly provided leadership as well.
The Homebuilders Sector ETF (XHB).
A strong October to January rally was followed by a period of consolidation. That consolidation soon became “continuation” as XHB and the homebuilders are headed higher again.
Today, we give the Homebuilders ETF (XHB) the love they deserve.
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$XHB Homebuilders ETF Chart
By the size of the consolidation, the near-term rally could carry up to the 107-110 area.
It’s worth noting that momentum is pretty hot so a quick move to that level may bring consolidation and wait for the 20/50 day moving averages to catch up.
Twitter: @andrewnyquist
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
