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The DJ Home Construction Index has been “HOT” over the past year, outperforming the S&P 500 by 60%. The rally now has this important index touching a couple of resistance lines and a Fibonacci Extension level at the same time.
At the same time this index is facing a couple of resistance levels, its relative momentum index is hitting its highest levels since the housing bubble peak! Watch the action of this white hot index to see if it “Cools Off” in the near future.