Chart of the Day - Wednesday, August 13, 2025

🏆 Today's Chart of the Day was shared by Aaron Jackson (@RotationReport).
 

• The Homebuilding ETF ($ITB) notched its second-highest close of the year today, rising +4.5%. It's up +7.8% in the past two sessions, marking its best back-to-back gain in more than a year.
   
• $ITB is testing a confluence of potential resistance around $111, aligning with January highs, and the 61.8% Fibonacci retracement. A breakout would open the door for a full recovery back to record highs near $130.

• Momentum remains strong, with RSI reaching overbought for the first time in nearly a year. Like Semis or Banks, Homebuilders are viewed as a leading indicator for the broader market due to their economic sensitivity. Further recovery would be a healthy sign for equities overall.
  
  The Takeaway: Homebuilders ($ITB) are gaining momentum, with $ITB flirting with its January highs near $111. Clearing this potential inflection point would set the stage for all-time highs and reinforce the bull case for equities overall.