“Depending on where that close is … “
That, from the last update on real estate, IYR
Price action is extracting every last bit of up-side. We’re down to the five-minute chart (above) to discuss yesterday’s move.
Any time price action penetrates a low or support level, it automatically puts that action in ‘spring’ position. Sometimes the selling is just too strong and the spring set-up fails immediately.
Other times (like yesterday), it holds.
Another way to look at it; for IYR to move higher, it had to go lower to get the needed fuel (penetrating support levels). Only this time, and depending on the data provider, IYR closed unchanged or up 0.02-pts.
So, the range in our recent technical discussion(s) has gone from 9.77%, to 1.83%, to 0.60%, 0.27%, and now, yesterday, 0.0%.
Before a market can go down, it has to stop going up … looks like we’re there or at least at the point where reversal is highly probable.
The hourly chart has the characteristic where volume spikes indicate trend change or potential change. The right side of the chart has the spikes but no direction change … yet.
Separate but related, Uneducated Economist gives his take on potential government ‘incentives’ for real estate.