Stubborn Homies

Here is a chart to ponder over the weeekend.

The homebuilders have been strong for much of 2012, a clear leadership group. Recently they caught wind of the market correction and came slamming down to a critical price area. As you can see on the updated daily chart of the sector ETF below, we appeared to have a big breakdown earlier today only to see sharp reversal.

Regardless of whether you believe in this reversal or not, you now have some well-defined price levels to trade against and manage risk for longs and shorts alike.

_____________________________