Its' been a rough few months for real estate: from May of 2013 to the first of this year, The Real Estate ETF (IYR) fell over 15%. That decline took IYR to the bottom of its rising channel as momentum became over sold.
Members bought IYR due to support and oversold conditions. The inset chart above shows that IYR is ahead of the S&P 500 by 8% since the first of the year.
Still Oversold
Real Estate is bouncing off support and is breaking above resistance of a bullish falling wedge and momentum remains oversold at (2) above.