NEW YORK (TheStreet) -- Armstrong World (AWI), Lennox International (LII), Masco (MAS), Owens Corning (OC) and Vulcan Materials (VMC) 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.