So goes the housing market and real estate, goes the U.S. economy.
Well maybe not exactly, but the housing market plays an important role in the economy. And the past few years have been pretty darn good.
BUT, will the good times continue?
Today we look at a “weekly” chart of the Homebuilders ETF (XHB) and highlight why we are at an important juncture right now!
First and foremost, we need to point out that the trend for homebuilders remains up! … for now.
As you can see, the Homebuilders (XHB) have pulled back within a 3-year rising channel and are now testing important price support at (2). Note as well that XHB has formed a head and shoulders pattern in the process.
In my humble opinion, what homebuilders do here is important for the big picture of the economy and stock market. Stay tuned!
$XHB Homebuilders ETF “weekly” Chart
Twitter: @ChristineLShort
The author may hold positions in mentioned securities. 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.
