Markets continue to fight the tug of war near important levels. The S&P 500 flirts with a CLOSE above the 1848 level, and the Nasdaq seems a bit gun shy at the round 4300 figure. Homebuilders had a banner session as the XHB took out a 33.48 cup base gaining on the best daily volume in months. It looks like it will advance for a 5th straight week come Friday, which would be the first time the ETF has done that since a 7 week winning streak between the weeks ending 12/23/11-2/3/12. LEN in the group is flirting with multi year highs just below a very good looking cup base pivot point of 44.50. DHI received volume confirmation today on yesterdays 24.27 cup with handle trigger that we profiled in last Tuesdays Game Plan. We took some money off the table today in the group and sold our TMHC for an 11% profit. The stock has had a monster move of 25% the last 5 weeks and we will await some consolidation and perhaps a handle to develop before reentering. The groups strength comes amid some poor housing news this week from existing home sales, Case-Shiller data, and TOL missing on key components of its earnings report. Even HD is talking down the prospects for a stronger housing market going forward. With all this bad news HD and TOL rallied after releasing earnings. As @joebell_trader put it this morning, climbing the proverbial wall of worry.
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