How strong is the housing market? The best way to check is the PHLX Housing Index, which consists of 11 homebuilder stocks and eight companies that provide products and services supporting the housing market. This housing index is up 11.9% year to date and outperforming the S&P 500 , which is up just 1.2%.

Let's look at five diversified building-materials components of this index to trade.

Lennox International (LII) , Masco (MAS) and Owens Corning (OC)  set all-time or multiyear highs on Wednesday. Vulcan Materials (VMC) set a multiyear high on Nov. 6, while Armstrong World (AWI)   set a 52-week high on Aug. 18. 

Here's the weekly chart for the housing index.


Courtesy of MetaStock Xenith

The housing index has a positive weekly chart with index above its key weekly moving average of $233.43 with weekly sentiment projected to rise to 50.69 this week up from 45.58 on Nov. 13.

The horizontal lines are the Fibonacci retracements of the decline from its July 2005 high of 293.66 to the March 2009 low 54.31. The crash of 2008 totaled 81.5%. The index has been above its 61.8% retracement at 201.87 since July 2014 with a multiyear intraday high of 252.20 set on Aug. 18. The 200-week simple moving average at 188.92 is the longer-term uptrend for this index and the reversion to the mean, last tested the week of Jan. 6, 2012. 

Here's the weekly chart for Armstrong World.


Courtesy of MetaStock Xenith

Armstrong World, the designer of floors, ceilings and cabinets closed at $51.71 on Wednesday, up 8.3% so far in the fourth quarter and up just 1.2% year to date. It is in correction territory 14.8% below its 52-week high of $60.70 set on Aug. 18.

The weekly chart shifts to positive if the stock closes Friday above its key weekly moving average of $50.82 and just below its 200-week simple moving average of $52.17. The weekly momentum reading is projected to rise to 29.08 up from 24.04 on Nov. 13.

Momentum scales from 00.00 to 100.00 with a reading below 20.00 oversold and a reading above 80.00 overbought. A rising reading above 20.0 is positive while a declining reading below 80.00 is negative. This study is shown in red along the bottom of the chart.

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 $54.82, which is a key level on technical charts until the end of 2015.

Here's the weekly chart for Lennox.

Courtesy of MetaStock Xenith

Lennox International, the air conditioning and heating company, closed at $136.74 Wednesday, up 20.7% so far in the fourth quarter and up 43.8% year to date. It set an all-time high of $136.94 on Nov.18.

The weekly chart is positive but overbought with the stock above its key weekly moving average of $128.68. The weekly momentum reading is projected to rise to 83.86 this week up from 79.01 on Nov. 13, rising into overbought territory.

Investors looking to buy Lennox should place a good till canceled limit order to purchase the stock if it drops to $129.74 and $121.08, which are key levels on technical charts until the end of November and the end of 2015, respectively.

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.

Here's the weekly chart for Masco.


Courtesy of MetaStock Xenith

Masco, the home improvement and building products company, closed at $29.84 on Wednesday, up 18.5% so far in the fourth quarter and up 34.8% year to date. It set a multiyear high of $29.89 on Nov. 18. 

The weekly chart is positive but overbought with the stock above its key weekly moving average of $28.02. The weekly momentum reading is projected to rise to 80.64 this week up from 78.06 on Nov. 13, rising into overbought territory.

Investors looking to buy Masco should place a good till canceled limit order to purchase the stock if it drops to $25.63, 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.

Here's the weekly chart for Owens Corning.


Courtesy of MetaStock Xenith

Owens Corning, the provider of insulation, roofing and siding, closed at $47.56 on Wednesday, up 13.5% so far in the fourth quarter and up 32.8% year to date. The stock set an all-time high of $47.94 on Wednesday.

The weekly chart is positive with the stock above its key weekly moving average of $45.45 with its 200-week simple moving average of $38.10. The weekly momentum reading is projected to rise to 72.30 this week up from 67.94 on Nov. 13.

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.

Here's the weekly chart for Vulcan Materials.


Courtesy of MetaStock Xenith

Vulcan Materials, the concrete and cement company, closed at $103.09 on Wednesday, up 15.6% so far in the fourth quarter and up 56.8% year to date. The stock set an all-time high of $103.44 on Nov. 6.

The weekly chart is positive with the stock above its key weekly moving average of $98.00. The weekly momentum reading is projected to rise to 74.66 this week up from 67.14 on Nov. 13.

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

A key level of $101.98 will remain in play until the end of the year.

Investors looking to reduce holdings should place a good till canceled limit order to sell the stock if it rises to $106.62, which is a key level on technical charts until the end of November.

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