Markets achieved broad gains Monday as every major sector rose. Energy led the way with a 1.4% gain, but 7 of the top 10 groups rose by basically 1%. The S&P 500 gained 1.2%, reclaiming its 50 day SMA in the process, and the Nasdaq by 1.15%. Looking back at last week we were most impressed with the homebuilders. The ITB last week was basically UNCH down .1% as the averages as the S&P 500 fell 2.7%. Leaders like LEN and RYL have been acting very well and even keeping an eye on the periphery plays could have been very profitable. WHR reclaimed the round 200 number today on a CLOSING basis for the first time since losing it on 3/11 (WHR traded above that round figure several times intraday) dropping close to 3% on heavy trade that session. Below is a chart of another name that derives its strength mostly from the housing sector. This name brings in both the round number and CLOSING theories into play. We recommended a purchase with a retest of a flat base trigger of 164.23 originally taken out on on 3/18 jumping almost 4%. Last Thursdays session recorded a bullish engulfing pattern finding a bounce almost exactly at the round 160 figure and the stop on the trade was 161.50 which was taken out intraday, but not importantly on a CLOSING basis. If this sector can continue to receive nice rotation into it, it could give the market a nice boost.
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