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Monday
Sep092013

Homebuilders Break Out of Downtrend Channel

The Homebuilder group has struggled for months, but the group has been trying to find a bottom over the last week or so and today it has broken above the top of its steep downtrend channel.  This is a first step in the rebuilding process of the group's technicals, and the hope for bulls now is that it doesn't dip back into its downtrend channel in the near term.

Below is a table of the eleven stocks that make up the S&P 1500 Homebuilder group.  As shown, ten of eleven stocks in the group are still below their 50-day moving averages, with M/I Homes (MHO) and MDC Holdings (MDC) the furthest below.  These are the two worst performing stocks in the group year-to-date as well.