HOMEBUILDERS CONTINUE TO TUMBLE
RYLAND IS BIGGEST LOSER... Last week I talked about Ryland leading the homebuilders lower. It's doing it again today. RYL has tumbled 9.80 this morning on rising volume. That puts the homebuilder at the lowest level in three months and within striking distance of its 200-day moving average. Chart 1 shows the short-term damage. The weekly bars in Chart 2 also paint a negative picture. All of the weekly indicators have turned negative -- including the relative strength line. Needless to say, a weekly close beneath the 40-week moving average would be even more bearish. You may recall that I recommended profit-taking in this stock and the homebuilding group last Friday.
Chart 1
Chart 2
OTHER BIG POINT LOSERS... All the homebuilders are crumbling today. The next three charts show some of the biggest point losers today. All have broken their 50-day averages and their December lows. The big jump in volume over the past week is another symptom of heavy selling.
Chart 3
Chart 4
Chart 5
