Conclusion, Investment Implications, Strategy
The SPDR S&P Homebuilders ETF (XHB) broke down from 3 months of sideways investor indecision on Jly 1st, indicating a minor bearish trend change that targets an additional 9% decline to 89.50. This target will remain valid as long as the lower boundary of the indecision area, currently at 101.36, now loosely contains price on the upside as overhead resistance.
Homebuilders Breaking Down Amid Contracting Assets
The upper panel of Chart 1 below shows that the SPDR S&P Homebuilders ETF (XHB) has broken down from 3 months of sideways investor indecision, indicating a minor bearish trend change that targets an additional 9% decline to 89.50 that will remain valid as long as the lower boundary of the indecision area, currently at 101.36, now loosely contains on the upside as overhead resistance. The lower panel shows that the total net assets invested in XHB (assets under management) declined below their 21-day moving average on May 29th, indicating a trend of monthly contraction that is characteristic of Tactical price declines.
Current Sector & Industry Group Ideas
Table 1 below is also accessible via the Sector & Industry Group Ideas rectangle at the top of the Research Center.
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This table also regularly appears in our weekly Keys To This Week: Sector & Industry Groups report published on Monday mornings.