To follow-up on this post that I wrote last Wednesday, the homebuilders continue to show stunning signs of life after being dormant for the past few years. You can see on the sector ETF daily chart of the homies below, XHB, that the recent breakout has been accompanied by strong buy volume. In addition, after breaking out we have seen a rather orderly and flat consolidation, digesting the gains particularly well. There is now a probable scenario where the homies continue on higher for a secondary breakout.
Homebuilders like BZH HOV ROYL SPF TOL should be kept on watch for those breakouts as they work through bull flags here, while CHCI LEN look to already be breaking out now.
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