The market’s been handing out invitations left and right… and just about everyone has shown up.
Speculative growth, Semis, Industrials — even Energy has caught a bid.
It’s been a broad and steady move off the April lows. Almost everything’s working.
Almost.
One group that continues to sit on the sidelines? Homebuilders.
They’ve completely sat out this rally so far.
The SPDR Homebuilders ETF $XHB has done nothing — just hovering below the lower bounds of a nasty topping formation.
This zone also lines up with the 38.2% retracement from the 2022–2024 rally, adding to the confluence of interest here.
Homebuilders tend to be the life and soul of the party in bull markets.
These are some of the most economically sensitive names out there. When they’re trending higher, it usually means we’re in a healthy environment and investors are embracing risk.
So now what?
Are we betting Homebuilders complete the top and fall apart in the middle of a bull market?
Or do they reclaim this level and finally play catch-up?
The line in the sand lies at 97 for XHB. If they reclaim that level, it supports the idea of a strong back half of the year.
After all, if there’s one thing I’ve learned — it’s never too late to show up to a party. Especially when everyone else is already dancing.
