SHW Sherwin Williams Weekly Chart Overbot Rising Wedge Negative Divergence

Here is another darling of the housing recovery that has ran its course and is topping for a roll over. Do you sense a theme this morning?  (Overbot conditions, rising wedges and negative divergence). On the paint side of the recovery, SHW has had a phenomenal run from 70 to 165, 140%. The party is over, however, and all that remains is empty paint cans and brushes that no one bothered to clean. The negative divergence will spank her down.  Projection is sideways to sideways lower moving forward.  The pink bars show a potential H&S formation, that will need a right shoulder in the springtime; head at 165, neck line at 140, target is 115. All these housing momo plays, gysum, USG, lumber, WY and LL, flooring, MHK, and paint, SHW, may need some sideways action to burn the euphoric bullish energy off, but the best days are behind them all. USG is the most bearish right now, then WY and LL, then SHW, then MHK. The flooring side with MHK, is holding up the best and can squeeze out a bit more on the upside. When MHK rolls over in the days and weeks ahead that will firmly signal a roll over in the housing sector. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

Note Added 1/28/13 at 10:02 AM:  The above chart is posted as Pending Home Sales report a surprising 4.3% drop when a 1% rise was expected. The broad markets weaken.