Homebuilders ETF Looks Shaky

By Candy Matheson of Strawberry Blonde's Market Summary

Blogger & Retired Russell 2000 E-mini Futures Day Trader • Aug 16, 2022 at 3:26 PM EDT

The monthly chart of the Homebuilders ETFreveals the explosive activity that occurred from mid-2020 to January 2022, nearly doubling in value, before plunging, along with the Major Averages and equities.

The following monthly chart of the Homebuilders ETF (XHB) reveals the explosive activity that occurred from mid-2020 to January 2022 -- nearly doubling in value -- before plunging, along with the Major Averages and equities, then bouncing somewhat.

However, anything above 40.00, especially above 50.00, is subject to further weakness and a rapid downdraft -- to, potentially, the long-term major support level of 30.00, or lower -- as the U.S. and world economies slow into recession over the coming weeks and months.

If XHB plummets, I expect that the SPX will follow...so, this ETF is worth monitoring closely.

The following article describes the recent weakness in this market.

Source: ZeroHedge

More By This Author:

SoftBank: Hooked On Bubbles
MSCI World Index In Freefall
Emerging Markets ETF: EEM In Freefall

Disclaimer:

All of my posts (and charts) contain solely my own technical analyses/opinions/observations (which may contain errors or omissions) of a variety of markets and are provided for your information or entertainment only...none of it may be construed as financial or trading advice. I trade my personal account only...I do not manage a fund for other people. Please do your own "due diligence" before engaging in any trading activity.

No part of my Blog may be reproduced or copied and presented as your own material.

It is the sole property of StrawberryBlondesMarketSummary.com. The sharing of my posts, is, however, permitted, as long as the appropriate credit is duly given, and as long as they remain unaltered/unedited. To share them, however, does not mean that I endorse you or the site at which you choose to share my information (although, no doubt, your intentions are honourable).