Conclusion, Investment Implications, Strategy
The SPDR S&P Homebuilders ETF (XHB) is in the midst of a November 2023 major uptrend and is currently breaking out higher from six weeks of sideways investor indecision. This breakout targets an additional 14% rise to 136.00 that will remain valid above the 119.55 area. Meanwhile, the total net assets invested in XHB are in an Aug 19th trend of monthly expansion while XHB is also in a Jly 15th trend of Strategic relative outeprformance versus the S&P 500 (SPY). Together, these factors establish favorable conditions for more outright strength and relative outperformance from homebuilders and related assets.
XHB Trending Higher Amid Expanding Assets & Relative Outperformance Versus Stocks
The upper panel of Chart 1 below shows that the SPDR S&P Homebuilders ETF (XHB) is currently breaking out higher from six weeks of sideways investor indecision. A sustained rise above the upper boundary of the indecision area at 119.55 would target an additional 14% rise to 136.00. The middle panel shows that the total net assets invested in XHB (AUM) are in the midst of an Aug 19th trend of monthly expansion. Expanding assets indicate bullish conviction in higher prices. The lower panel shows that XHB is also in the midst of a Jly 15th trend of Strategic (quarterly) relative outperformance versus the benchmark S&P 500 (SPY).
As long as these three conditions remain true, the price of XHB is likely to continue moving higher in the weeks ahead.
Current Sector & Industry Group Ideas
Table 1 below is also accessible via the Asbury ETF Trade Ideas rectangle at the top of the Research Center.
Click the table to make it larger