SRS Real Estate Ultrashort Weekly Chart Falling Wedge Oversold Positive Divergence

SRS is the double inverse of the real estate sector. Thus, if SRS moves up, the real estate and housing sectors are moving down. This chart is a nice positive divergence set up across all indicators, daily and weekly charts, including falling wedges and oversold conditions as well, which all point to upside ahead. When the 20 week MA crosses above the 50 MA this signals that the next leg down in the housing market has begun.

The pink inverted H&S is in progress, a 36 head and 54 neckline targets 72. This chart shows that 2012 will be another rocky year for the housing market. Do not hold your breath for a housing market recovery anytime soon.

The RSI moving above 50% will signal the all clear for SRS, unfortunately, that means the housing market will be crumbling. Projection is for sideways to sideways up for SRS for the weeks and months ahead (which mreans weaker housing sector, builders and affiliated real estate companies) with a target of 54 in 2012. If/when the 20-week MA crosses above the 50 MA, that will be the kiss of death for the housing market and the MA's are within one buck of each other. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.