Thursday, February 16, 2012

The Homebuilding Sector is Near Two Year Highs

Three weeks ago, prices moved through previous resistance established in the late Spring of 2010.  More importantly, the strength of the current rally is impressive.

The daily chart shows a market sector that has been rallying since early October.  Prices moved through resistance right after the first of the year, and since then money has been pouring into the market.  However, momentum is declining on this chart, and is about to give a sell signal.