The Homebuilders Select SPDR ETF (XHB) has turned up in a meaningful way today after completing a correction of the March 7-24 upleg. My work indicates that the XHB should climb to retest the 24.45 high and sustain those highs the next time, on the way to a 26.00 target. Components LEN, MTH, NVR, and DHI look very compelling technically from the long side and should be the engines that propel the XHB higher.



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.