That’s a huge move for an ETF that mostly invests in homebuilders and building products – especially when interest rates have been rapidly rising. Yet the low supply of homes in the U.S. has provided builders motivation to increase construction despite higher rates.
But when we last checked in on ITB (red arrow in the chart below), there were warning signs that its rally could soon reverse.
ITB has recently retraced around 10% off those highs. So today I want to see what’s on the horizon…