Today’s weakness in the iShares Dow Jones Real Estate Trust ETF (IYR) in reaction to disappointing New Home Sales data leaves behind what looks to me to be a completed recovery rally pattern from 82.56 to 88.13. As such, my work argues that the IYR has started a new down-leg within its larger corrective pattern off of the February 8 high of 94.99, which hit an initial low at 82.56 on March 5. Next immediate target is 84.60 to test the support line off of the March 5 low.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.