Likewise, the Home Construction Index has enjoyed a 5.6% rally but may run into trouble at the $33 level.

ITB chart

Looking at the broader market, we can see the S&P 500 held an important level at $260 and has had a good bounce.  But unlike prior declines, it not only broke the 200-day moving average but also remained below it. Unless it can clear the $275 level, the downtrend and bears will remain in control.

SPY chart

As we turn toward the Nasdaq 100, which is dominated the FANG stocks like Apple, Amazon, and Google and has led the bull market, we also see a break of the 200 DMA as well as important trendlines.

QQQT chart


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