NEW YORK (TheStreet) -- Armstrong World (AWI) - Get Report, Lennox International (LII) - Get Report, Masco (MAS) - Get Report, Owens Corning (OC) - Get Report and Vulcan Materials (VMC) - Get Report are five components in the PHLX Housing Index, which contains 19 companies: 11 homebuilders and eight companies that provide products and services supporting the housing market.
The housing index has a year-to-date gain of 6.9%, down from a gain of 8.5% on May 19. Even so, the index continues to beat the Standards & Poor's 500 Index, which has a year-to-date gain of 3%, down from 3.3% on May 19. The housing index set a multiyear intraday high on April 6 while the S&P 500 set its all-time intraday high of 2,134.72 on May 20.
Let's look at the weekly chart for the housing index:
Courtesy of MetaStock Xenith
The weekly graph for the housing index focuses on the Fibonacci Retracement levels of the popped housing bubble which saw this index decline 82% from 293.66 in July 2005 to a low of 54.31 in March 2009. The housing index has been above its 61.8% retracement at 202.05 since the week of Nov. 6 with a multiyear intraday high of 238.32 set on April 6. The 200-week simple moving average at 173.52 is the longer-term uptrend for this index and lines up with the 50% retracement of 173.80.
Here are the daily charts of the companies that support housing and their likely trading ranges. These charts are courtesy of MetaStock Xenith.
Armstrong World had a close of $54.79 on Thursday, up 7.2% year to date, down from a gain of up 12% on May 19. The designer of floors, ceilings and cabinets held its 200-day simple moving average at $53.31 this week and is below its 50-day simple moving average of $55.95. The Jan. 16 low was $48.60 with its April 27 high of $58.96.
Lennox International had a close of $111.73 on Thursday, up 17.5% year to date, down from a gain of 20% on May. 19. The air conditioning and heating company set an all-time intraday high of $118.43 on June 10 and is just above its 50-day simple moving average of $111.20 with its 200-day simple moving average of $98.52.
Masco had a close of $27.73 on Thursday, up 10% year to date, just below the gain of 10.2% on May 19. The home improvement and building products company set its multiyear intraday high of $28.38 on June 11 and is above its 50-day and 200-day simple moving averages of $26.95 and $25.17, respectively.
Owens Corning had a close of $39.90 on Thursday, up 11.4% year to date, down from a gain of 15% on May 19. The provider of insulation, roofing and siding traded as high as $45.70 on April 22 then as low as $37.29 on May 6. The stock is between its 200-day simple moving average of $37.36 and its 50-day simple moving average of $40.78.
Vulcan Materials had a close of $88.88 on Thursday, up 35.2% year to date, down from a gain of 40.5% on May 19. The concrete and cement company traded as low as $81.20 on April 21 and as high as $93.07 on May 15. The stock has held its 50-day simple moving average of $87.53 and is well above its 200-day simple moving average of $73.93.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.