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Real Estate ETF (IYR) is up almost three times as much as the S&P 500 Year-to-date. This rally has taken IYR up to a falling resistance line, drawn off the 2006 highs.
The DJ Home Construction Index is rather soft today as it as well is hitting a key resistance line (inset chart).
A breakout above resistance would be a good sign, as it would be a change from a series of falling highs. We are all aware how important this sector is to most people and the macro economy.
Is Real Estate at a key inflection point? The Power of the Pattern believes it is!