Stock of the Day

My Stock of the Day is actually an ETF, the iShares Real Estate fund (IYR).

With all the talk about whether the housing market has bottomed or not, I thought it was telling that the IYR is breaking below its 200-day average currently.

Actually, the IYR is a basket of many of the largest publicly traded REITs, and has exposure to the commercial real estate market, apartments, hotels, etc.

The stock has been bouncing around support between 84-86, but in the last few days it has broken below that support, and on increasing volume. In fact, a look at the chart shows that all of the high volume days this year have come on down days. Not a good trend.

The stock is oversold now, so it should bounce. But I think that the 84 level will act as resistance now. As such, it looks like this ETF is headed for more of a correction. And that likely means that any talk of a bottom in the real estate market is premature.