· LEN – fell below its 13-month uptrend line in March as the market cratered.
![](https://static.wixstatic.com/media/eb4ead_5b344b69e5114bc89de8a2e7f90e464d~mv2.jpg/v1/fill/w_937,h_572,al_c,q_85,enc_auto/eb4ead_5b344b69e5114bc89de8a2e7f90e464d~mv2.jpg)
Now, LEN has rallied 101% in the past 6 weeks and has arrived back at the March breakpoint, which should be resistance (zoom chart).
![](https://static.wixstatic.com/media/eb4ead_6955ba7649384edba1b0e09345aa6393~mv2.jpg/v1/fill/w_942,h_579,al_c,q_85,enc_auto/eb4ead_6955ba7649384edba1b0e09345aa6393~mv2.jpg)
The March decline pushed the 50DMA below the 200DMA (long term downtrend confirmation). Chart 3 shows that when the 50DMA crossed above the 200DMA in 2017 and 2019, LEN rallied an additional 48%+ both times, but when the 50DMA fell below the 200DMA in 2018, LEN fell an additional 30%.
![](https://static.wixstatic.com/media/eb4ead_bf2d401effdb484cb080df5a591cfd4e~mv2.jpg/v1/fill/w_941,h_572,al_c,q_85,enc_auto/eb4ead_bf2d401effdb484cb080df5a591cfd4e~mv2.jpg)
Finally, although the average 30 Year Mortgage has fallen to 3-year lows (chart 4), which normally would increase demand for housing and be good for homebuilders, but the availability of mortgage credit has fallen hard below its 7-year uptrend line (chart 5), which portends a poor environment for new home buying.
![](https://static.wixstatic.com/media/eb4ead_65486505b98441bfb967bf06daf0caf2~mv2.jpg/v1/fill/w_937,h_574,al_c,q_85,enc_auto/eb4ead_65486505b98441bfb967bf06daf0caf2~mv2.jpg)
![](https://static.wixstatic.com/media/eb4ead_a76a5d9d4c424da897582e7ba38cc14a~mv2.jpg/v1/fill/w_937,h_573,al_c,q_85,enc_auto/eb4ead_a76a5d9d4c424da897582e7ba38cc14a~mv2.jpg)
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