Rising rates are taking their toll on the Home Construction iShares (ITB) as the ETF broke neckline support on Wednesday. The head-and-shoulders pattern extends almost the entire year and today's breakdown confirms the bearish reversal. The indicator window shows the price relative (ITB:SPY ratio) moving to a new low as ITB underperforms the broader market.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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