Homebuilding Stocks Hitting New Highs
by Tom Bowley, Stockcharts.com
The stock market looks ahead and based on the latest breakout in homebuilding stocks (hitting new highs) ($DJUSHB), apparently traders like what they see on the horizon. The 10 year treasury yield ($TNX) held key support and is bouncing. Proceeds from the sale of treasuries seems to be finding a "home" in the DJUSHB. We spent more than a year consolidating in a bullish ascending triangle pattern, then broke out with a measurement to 710. Today's breakout above 600 will likely provide the impetus for another leg higher in the DJUSHB. Also reflected on the chart below is bounce off support in the TNX and the recent breakout in DR Horton (DHI). DHI recently reported better than expected revenue and earnings and action the past two days certainly improves its technical standing as well. Check out this chart:
Happy trading!
Tom
Copyright © Tom Bowley, Stockcharts.com
