Monday, March 5, 2007

Homebuilders Rally Looks Over

The homebuilders stocks enjoyed a rebound that traced back to the beginning of the recent stock rally. However, that rally looks over at this point.

Here's the daily chart

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Notice we have two gaps down with a large volume on the sell-off.

Here's the weekly chart:

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This chart more clearly shows the drop-off that's occurred. Notice the uptrend is clearly broken.