Stumble Upon Homes

While the "rich get richer" theme in the market of late has been playing out in the market, with leaders screaming higher, and the AAPL CMG GPRO earnings reactions receiving their fair share of the limelight, homebuilders and banks have quietly outperformed. 

If the market is going to move higher into August, then I suspect the homies and finnies will need to sustain a healthy rotation higher. SPF, with earnings on July 30th, is one example of a promising long setup over $9.20. 

On the daily chart, below, note the well-defined horizontal resistance (light blue line) dating back over a year. The stock has a fair amount of shorts in the float, too, and is capable of a squeeze.

But head-fakes have been common in this market. So I suspect participation across the board will need to pick up in order for this one to hold a move for more than one day.