That bearish megaphone pattern we looked at on homebuilder Lennar continues to wreak havoc after a multi-quarter uptrend. I explained the pattern in detail in this post back in June.
If Lennar is too extended for you to short, I am looking at DHI on the second chart below to follow suit, though earnings are tomorrow. So, I would wait after the call and market reaction first.
But the main takeaway is that seeing these bearish patterns form is one thing. But the follow-through is concerning, to say the least.
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