The “Power of the Pattern” shared on January 17th that a multi-year breakout was taking place in the crushed homebuilders sector, reflected in the chart below. (See 1/17 post here) 

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Below was the quiz from a couple of 1/29.  The quiz reflected a breakout of resistance and then a retest of the line as support…Have any guess what this product is?  (see quiz post here)   It was a follow up to the chart above!

 

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The quiz above was produced at the moment that XHB was testing old resistance as support.  What do you want to see on any breakout?  A retest of the old resistance line as support.  Below is a current snapshot of XHB-

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XHB retested old resistance as support and is now pushing higher.  This TA reflects continued positive price action for this sector. 

The Real Estate sector had a good deal to do with the softness in the economy from 2007 to 2009.  Could further price appreciation in this sector be good news for the economy?  Stay tuned!

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