One thing I’ve seen pouring through the insane amount of daily charts today is the sudden change in behavior in home-builders.

The four charts below represent this weakness quite nicely. In fact each one, Lennar (LEN), KB Homes (KBH), D.R. Horton (DHI), and Pulte Homes (PHM) all show bearish price patterns at their peaks that indicate to me, at the very least, a pullback is in order. 

Right now is probably the best time to short them if you are worried about keeping the risk tight on the trade, however, if we get downside follow through tomorrow, it would probably represent a better time ‘technically’ to get short on the home builders. 

Here’s the chart breakdowns on the home builders. home-builder-crying

lenar-len-housing-tanking

kb-homes-kbh-blow-off-top

PulteGroup PHM evening star bearish

DR Horton DHI needs to pullback

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