Real Estate & Home Builders at an inflection point?

 

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Real Estate ETF (IYR) is up almost three times as much as the S&P 500 Year-to-date. This rally has taken IYR up to a falling resistance line, drawn off the 2006 highs. 

The DJ Home Construction Index is rather soft today as it as well is hitting a key resistance line (inset chart). 

A breakout above resistance would be a good sign, as it would be a change from a series of falling highs. We are all aware how important this sector is to most people and the macro economy.

Is Real Estate at a key inflection point? The Power of the Pattern believes it is!

Kimblechartingsolutions.com

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Europe is walking a very fine line here! Watch the next step!!!

 

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The strong rallies in London, Germany & France over the past few years has created steep bearish rising wedges, which two-thirds of the time result in lower prices.

No doubt the trend is up on all three of these key markets!

Are each walking on a fine line of support, at lofty levels? The A break of support here could set off a wave of selling pressure, not only in Europe, it could spill over into the states markets.

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The ETF EFA has also created a rising wedge and could be working on a break of support above. A break of support could trigger some selling pressure in Europe. Could it spill over into the states?

It might be worth watching Europe a little closer than normal right now due to these patterns!!!

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Gold & Silver Bulls want to see this happen!

 

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The above chart is the Silver/Gold ratio. Strong rallies in both metals often take place when this ratio breaks above key falling resistance over the past 15-years.

At this time the ratio remains inside of a three year falling channel. The ratio has had a nice rally since the first of June at (1). What this ratio does upon hitting falling resistance line (2) becomes very important for the bullish case in the metals complex.

Metals bulls want and need resistance line (2) to be broken to the upside!

If you would like to stay abreast of this ratio, its patterns and messages per how to play it, I would be honored to have you as Member. 

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