Index performance this week:
This week we find that the broad-based rallied continued as nearly 90% of the ETFs that I track were higher (click to enlarge):
The SPDR Homebuilders (NYSEARCA:XHB) fund was the standout leader as housing stocks surged (for lack of a stronger word) on Thursday amid a plan by the government to freeze some subprime rates.
As the weekly chart below shows, the XHB has struggled for much of the year - shares have been locked in a steady downtrend. This week's bounce comes as the ETF hit a yet another new all-time low last week.
Based on the chart, I think it is too early to call the weekly downtrend broken, but that is something to watch for. Technical turnarounds can proceed the fundamental turnaround. In other words, the market tends to be a discounting mechanism and looks forward.
Index performance year to date: