Homebuilders ETF Looks Shaky
Candy Matheson | Aug 16, 2022 03:20PM ET
The following monthly chart of the SPDR® S&P Homebuilders ETF (NYSE:XHB) reveals the explosive activity that occurred from mid-2020 to January 2022—nearly doubling in value—before plunging, along with the major indexes and equities, then bouncing somewhat.
However, anything above $40, especially above $50, is subject to further weakness and a rapid downdraft—to, potentially, the long-term major support level of $30 or lower—as the U.S. and world economies slow into recession over the coming weeks and months.
If XHB plummets, I expect the S&P 500 to follow...so this ETF is worth monitoring closely.
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