At least that’s the way it looks right now.
Under the radar, the sector (IYR) may be getting ready for a dramatic break lower.
The chart above is the 3X inverse fund DRV (inverse of IYR).
The table shows entries over the past few days; not advice, not a recommendation. Currently, the firm has no other open positions.
Early in this morning’s session, IYR posted a new daily low with DRV conversely, posting a new daily high.
At this juncture (11:23 a.m. EST), we’re in a very tight range (both tickers, IYR, DRV) that’s oscillating in an attempt to determine the direction of least resistance.
From a weekly momentum standpoint, MACD has been positing lower for two weeks and is near a zero crossing.
With that, we’re favoring the downside for IYR and upside for DRV.
The market’s hovering at all time highs … effectively masking the fact, air is going out of IYR.
Charts by StockCharts