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What Real Estate's Attempted Breakdown Means For Stocks/Bonds

Published 02/02/2015, 04:33 PM
Updated 07/09/2023, 06:31 AM

 iShares Trust DJ US Real Estate

Real Estate (ARCA:IYR) has done very well over the past year, gaining almost 10% more than (ARCA:SPY). As of Monday, IYR was ahead of the SPY by about 6%.

The Power of the Pattern reflects that IYR is at the top of a long-term trend channel and the top of a steep, short-term rising channel. Recently, IYR was hitting both at the same time at (1).

Now, IYR could be breaking support of its steep rising channel at (2).

  • Question: is IYR sending important signals to the broad market? Could be.
  • Question: is IYR sending important signals to the bond market? Possibly.

What IYR does in the near future could be very important to several areas of the markets. Watch it closely to see if key signals come from this hot sector.

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