Chart of the Day - Thursday, March 31st, 2022

Today’s Chart of the Day was shared by Michael Kahn (@mnkahn). It's a daily bar chart of the Home Construction ETF, $ITB, over the past 11 months. The largest stocks in this ETF include; $DHI, $LEN, $NVR, $PHM, and $PHM. Home Construction stocks have taken a beating lately, with $ITB closing at a fresh 52-week low on both an absolute and relative basis. At this point, it's down more than 28% from its highs. As Michael points out, mortgage rates have been putting pressure on the group, with the 30-year mortgage rate jumping to three-year highs. This is somewhat of a risk-on industry group, so it's not great to see it hitting new lows like this. It would be bullish to see $ITB reclaim former support around $66, but as long as we're below that level there is further downside risk.