Yesterday, the leading homebuilders rolled over, giving back most of their early morning gains. In fact, most of the leading homebuilder stocks were trading negative on the session. Lennar Corp (LEN) is one of the leading homebuilder stocks in the sector. Yesterday, LEN stock was trading lower by 0.61 cents to $41.69 a share. Short term traders should watch for intra-day support around the $41.40 level. The daily chart of LEN will have support much lower around the $37.50 area.
Some leading homebuilder stocks that declined included KB Home (KBH), Toll Brothers Inc (TOL), Hovnanian Enterprises Inc (HOV), and D.R. Horton Inc (DHI). This decline in the homebuilder stocks is taking place while the major stock indexes are rallying higher.
Should this leading industry group decline further it could be a warning sign for the overall economy. Traders would need to see further downside in this sector before panicking, but yesterday could be a warning sign.