One of the most important charts that any trader can follow at this stage of the game is the chart of the 10-year U.S. Treasury yield. Today, the yield on the 10-year U.S. Treasury Note is 2.71 percent. Higher bond yields have adversely affected the most housing stocks, commercial real estate stocks, mortgage REITS, and utility stocks.
The housing stocks are the most obvious industry group that is coming under selling pressure when interest rates rise. Leading housing stocks such as Lennar Corp. (NYSE:LEN), KB Home (NYSE:KBH), Toll Brothers Inc. (NYSE:TOL), and others in the sector are all trading sharply lower on the session. Traders that would like to follow the entire home builder sector can follow the iShares Dow Jones US Home Construction ETF (NYSERACA:ITB). Short term day traders should watch for intra-day support on the ITB around the $20.65 level.