Homebuilders are Testing the Foundation 🌤️ The Morning Print

Good morning! 

Home Construction stocks are threatening to breakdown from what appears to be a massive multi-year top.

Here's the setup.

The VWAP anchored from the October 2022 lows has consistently acted as support for the Home Construction ETF.

It's been messy, but this level has still managed to hold nonetheless. 

Now, homebuilders are sitting at their lowest levels in over three years relative to the S&P 500.

This group was one of the leaders out of the bear market, and now, they've turned into laggards in a bull market.

So far, the broader market has largely shrugged off their underperformance, but that could change if these stocks begin to lose structural areas of support.

We're watching homebuilders closely to see whether they can reverse some of this bearish price action, or if they're going to be one of the first offensive groups to break down.