I need to give you a heads up on the Homebuilders ETF (XHB), which is nearing a confrontation with major resistance between 22.7 and 23.30. Let's notice that the sharply declining 200-day moving average at 23.09 is right in the middle of that range and presents a major test of the bottoming/recovery process in the sector. However, based on my near and intermediate-term technical work, the XHB will hurdle the above-mentioned resistance zone on the way to 25.00.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.