A slew of retail stocks report earnings over the next two weeks, which could provide a catalyst or impetus for more selling for XHB.
“Gordon said the XHB ETF must hold above the support zone of roughly $31 to $34. If it breaks below this, new lows are highly likely, he said. The ETF also needs to hold its old lows of $25 to $26, added Gordon,” according to CNBC.
Declining prices could allow more buyers to enter the market, which could be a positive for XHB and rival funds.
“The group still faces its share of headwinds, including weakness in existing home sales, tight inventory and rising mortgage rates, but so long as job and wage growth continues, homebuilders should stay afloat,” said Mark Tepper, president of Strategic Wealth Partners, in an interview with CNBC.
For more information on the housing market, visit our homebuilders category.