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Its’ been a rough few months for Real Estate; from May of 2013 to the first of this year, Real Estate ETF IYR fell over 15%. This decline took IYR to the bottom of its rising channel and momentum became over sold.
Members bought IYR due to support and oversold conditions. The inset chart reflects that IYR is ahead of the S&P 500 by 8% since the first of the year!
Joe Friday… Real Estate is bouncing off support and is breaking above resistance of a bullish falling wedge and momentum remains oversold at (2) above.