Homebuilder Hunters

Lost in the shuffle of some earnings rallies from pre-market reports today, namely Home Depot, Macy's, and Wal-Mart, is the strength in the HD-related space of housing. 

Specifically, the homebuilders in the XHB ETF, below on the daily timeframe, may very well be ripe to follow HD's lead higher from a rather coiled chart pattern. Note how many times the XHB has been bumping its proverbial head up against the $36 level, with little in the way of violent rejection by price lower. 

If bulls prevail this time over $36, we have some specific homebuilders on watch long, especially considering many of them have already reported earnings this season. 

We do have New Home Sales figured on Friday morning. But the technicals are aligning nicely for bulls here to rotate down to the homies and sustain the sector moves we have witnessed in this rally.