Each week I perform a detailed technical analysis of the equities that make up the key sectors of the economy. While these analyses help me gauge to what extent, if at all, we should be exposed to a given sector, I'm also looking for any and all signals pointing to the state of the overall economy.
The housing sector, via XHB, the S&P Homebuilders ETF (which, in addition to the homebuilder stocks, includes names like Owens Corning, Whirlpool, Home Depot and Lowes) is offering zero support for anyone who thinks our consumer-driven economy is teetering on the edge of the next recession.
Here's XHB's year-to-date daily chart along with its on balance volume study (signals whether a security is being accumulated or distributed by investors/traders):
And here's a one-year chart along with two technical indicators (bottom two panels) that suggest the sector has more upside room to run:
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