as you can see from below the Homebuilder Index (XHB) has broken out most recently from the congestion area highlighted in the link below and now has a target of 38. Not bullish or bearish – just a pattern guy. so, as you can see below, we are finishing a PATTERN but what about the top 10 holdings of this ETF?
CLIFF NOTES: all top 10 XHB components have SELL PATTERNS. So, IF these work then they will weaken. IF NOT then this ETF should make new highs. We know our line in the sand …
Here are the top 10 holdings of XHB in no particular order – all are showing SELL PATTERNS
CLIFF NOTES: can see why this current level is important using Adams Pitchfork Method. The Head and shoulders shown in the post below never materialized by breaking the neck line and we rallied a buck or so higher. Still looking for this to be an “end of move” pattern …
