FYI: The S&P 1500 Homebuilder Group has had a strong start to the year, even as our housing survey data had a rough January. Below is a chart of the S&P 1500 Homebuilder Group going back to 1994. As shown, after ramping up significantly in the early part of the current bull market, the group has traded sideways since the end of 2012. After its run over the last couple of months, the group is now 2.5% away from breaking out of its current sideways range. If it can convincingly clear this level, it can attempt to make another leg higher as it tries to work its way back to prior highs reached during the housing bubble of the mid-2000s. It has a loooooong way to go to reach those levels, though.
Regards,
Ted
http://www.bespokeinvest.com/thinkbig/2015/2/10/can-homebuilders-break-out.html?printerFriendly=true
