REIT ISHARES BOUNCE OFF CHART SUPPORT -- KIMCO ACHIEVES BULLISH BREAKOUT -- OTHER REIT LEADERS

REIT ISHARES ARE BOUNCING OFF CHART SUPPORT... Last Thursday, I wrote about the improving chart picture in financials and homebuilders, and showed some individual stock leaders in each group. At the end of that message, I showed REIT iShares bouncing off chart support and showing good relative strength. I'm returning to that last group today because it continues to show good chart action and relative strength. I'm also going to show some of the stronger stocks in that group. Chart 1 shows Real Estate iShares (IYR) continuing to bounce off chart support drawn along its September peak. In an ongoing uptrend, pullbacks should find support near previous peaks (broken resistance becomes new support). That's what appears to happening in the REIT group. The rising relative strength ratio (below chart) has been rising since November.

Chart 1

REIT LEADERS ... The next five charts show individuala REITs that are contributing the most to today's gains. The day's top percentage gainer in Kimco Realty. Although the stock has been a laggard in the REIT group, it is achieving a bullish breakout today by rising above 14 for the first time in four months. The next three charts more closely resemble the REIT iShare chart. Chart 3 shows Host Hotels & Resorts bouncing off its October high. Charts 4 and 5 show Equity Residential and Prologis bouncing off their September highs. Apartment Investment & Management is the strongest of those five (Chart 6). Rising REIT shares are also giving a boost to the financial sector.

Chart 2

Chart 3

Chart 4

Chart 5

Chart 6