WY Weyerhaeuser Weekly Chart Overbot Rising Wedge Negative Divergence

Many of the housing sector stocks have enjoyed obscene runs higher over the last year on the talk of the ongoing housing recovery.  The gypsum, lumber, flooring, paint and other stocks all show the same characteristics on weekly and daily charts; rising wedge, overbot conditions and negative divergence which says a spank down is needed. The gains in these stocks have already been achieved for the most part. Prices should move sideways to sideways lower moving forward. LL exhibits the same characteristics.  $LUMBER peaked in December and has trended down ever since. 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.