Friday, November 5, 2010

IYR (Real Estate) Bypasses 61.8% Retracement

With the IYR breaking out to new highs, it has bypassed the 61.8% retracement level. This makes it less likely, albeit not impossible, that the IYR is at a turning point. The next level to watch, if there is no turn here, would be the 78.6% retracement level at 66.53. I also see a possible bear wedge which has an upper boundary a few points up.

It is shocking to me to think the REITs could achieve that level (practically at bubble levels) considering how slugging housing is, but perhaps they are pricing in a major recovery next year.

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