“In technical analysis, a price trading below its 200-day moving average typically is used to suggest that the long-term momentum is on the side of the bears. Furthermore, traders will watch for the moment where the 50-day moving average (blue line) crosses below the 200-day moving average (red line). This bearish crossover (shown by the red circle) is a very common sell signal and is known as the death cross. This crossover traditionally marks the beginning of a long-term downtrend and many bearish traders will likely look to protect their positions by placing stop-loss orders above the 50-day and 200-day moving averages, which are currently trading at $35.89 and $36.19 respectively,” according to Investopedia.
The equal-weight XHB mixes stocks such as Tempur Sealy (NYSE: TPX), Williams-Sonoma (NYSE: WSM) and Restoration Hardware (NYSE: RH) with pure play homebuilders such as Lennar (NYSE: LEN) and Toll Brothers (NYSE: TOLL) among others.
SPDR S&P Homebuilders ETF
