Armstrong World (AWI) , Lennox International (LII) , Masco (MAS) , Owens Corning (OC) and Vulcan Materials (VMC) are five non-homebuilder components in the PHLX Housing Index. These five stocks have outperformed the homebuilders, leading the index to a year to date gain of 7.6% which outperforms the S&P 500 down 1.9% for the year to date.

Today's charts and stock profiles will show that the housing industry will fail to lead the U.S. economy out its doldrums.

The housing index contains 19 components: 11 homebuilders and eight companies that provide products and services supporting the housing market. Here's the weekly chart for the housing index.


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The housing index has been above its 61.8% retracement at 202.05 since July 2014 with a multiyear intraday high of 252.20 set on August 18. The 200-week simple moving average at 186.44 is the longer-term uptrend for this index and the reversion to the mean, last tested the week of January 6, 2012. The key chart resistance is the February 2007 high of 254.91. Keep in mind that the housing index is below its pre-crash of 2008 high, while all major averages extended gains well above their pre-crash highs.

Here are the daily charts for these housing sector stocks.


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Armstrong World, the designer of floors, ceilings and cabinets, closed at $51.20 Wednesday, up 7.2% so far in October, up 0.2% year to date, and in correction territory 15.7% below its 52-week high of $60.70 set on Aug. 18. With a flat 200-day simple moving average, this stock is in a trading range. The stock is below its 50-day and 200-day simple moving averages of $53.21 and $54.49, respectively.

Investors looking to buy Armstrong should place a good till canceled limit order to purchase the stock if it drops to $46.08, which is a key level on technical charts until the end of 2015. Investors looking to reduce holdings should place a good till canceled limit order to sell the stock if it rises to $57.26, which is a key level on technical charts until the end of October.


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Lennox International, the air conditioning and heating company closed Wednesday at $125.05, up 10.3% so far in October and up 31.5% year to date. A positive technical indicator known as a "golden cross" was confirmed on Dec. 10, 2014, with the stock at $93.13. A "golden cross" occurs when the 50-day simple moving average trends above the 200-day simple moving average indicating higher prices are ahead. This proved to be the case as the stock traded as high as $127.38 on Oct. 20 all but ignoring the China-induced flash crash on Aug. 24. The stock is well above its 50-day and 200-day simple moving averages of $119.43 and $111.40, respectively.

Investors looking to buy Lennox should place a good till canceled limit order to purchase the stock if it drops to $85.28, which is a key level on technical charts until the end of 2015. Investors looking to reduce holdings should place a good till canceled limit order to sell the stock if it rises to $137.23, which is a key level on technical charts until the end of 2015.


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Masco, the home improvement and building products company, had a close of $26.85 on Wednesday, up 6.6% for the year to date. The stock began the year above a "golden cross" that was confirmed on Sept. 4, 2014 when the close was $20.86. The "golden cross" stayed with the stock as it tested its 52-week high of $28.59 on Aug, 18. The stock ended Wednesday above its 50-day and 200-day simple moving averages of $26.58 and $24.26, respectively.

Investors looking to buy Masco should place a good till canceled limit order to purchase the stock if it drops to $22.64, which is a key level on technical charts until the end of 2015. Investors looking to reduce holdings should place a good till canceled limit order to sell the stock if it rises to $32.82, which is a key level on technical chart until the end of 2015.


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Owens Corning, the provider of insulation, roofing and siding, closed at $45.94 on Wednesday, up 9.6% so far in October and up 28.3% year to date. The stock confirmed a "golden cross" on Feb.3 when the stock closed at $39.78. This signal had the 50-day simple moving average above its 200-day simple moving average indicating higher prices ahead, and the stock set its 52-week high of $47.89 on Aug. 18. The 200-day was tested again on Sept. 30 when the average was $41.19. The stock ended Wednesday above its 50-day and 200-day simple moving averages of $44.43 and $41.82, respectively.

Investors looking to buy Owens should place a good till canceled limit order to purchase the stock if it drops to $41.71, which is a key level on technical charts until the end of 2015. Investors looking to reduce holdings should place a good till canceled limit order to sell the stock if it rises to $55.88, which is a key level on technical charts until the end of 2015.


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Vulcan Materials, the concrete and cement company, had a close of $88.10 on Wednesday, down 1.2% so far in October but up 34% year to date. It is in correction territory 14.2% below its 52-week high of $102.65 on Sept. 17.

The stock confirmed a "golden cross" on Dec. 22, 2014, when the stock closed at $66.09. This signal had the 50-day simple moving average above its 200-day simple moving average, and the stock set its 52-week high of $102.65 on Sept. 17. The 200-day was tested again on Sept. 29 when the average was $84.60. The stock ended Wednesday below its 50-day simple moving average of $94.20 and above its 200-day simple moving average of $86.76.

Investors looking to buy Vulcan should place a good till canceled limit order to purchase the stock if it drops to $70.24, which is a key level on technical charts until the end of 2015. Investors looking to reduce holdings should place a good till canceled limit order to sell the stock if it rises to $95.35, which is a key level on technical charts until the end of 2015.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.