SRS Daily Chart: Keystone continues to like SRS moving forward which is an inverse play against the real estate sector. The consensus of traders and media pundits is that the real estate and housing sector is in recovery now and the worst is over. The SRS charts do not reinforce this idea. Another dip lower in the real estate market should begin, what better week for it to start than a week full of housing data that is ahead. SRS is ready to bounce from the positive divergence and oversold stochastics which means the consensus will be very disappointed as we move into summer. Projection is a bounce to test the 20 and 50-day MA area, then a small pull back to satisfy the red money flow line, then up and away.
SRS Weekly Chart: Same set-up for the weeky chart as the daily chart. When any stock, index or ETF sets up with positive divergence on both the daily and weekly charts, this is a powerful postivie force for price which occurs over 90% of the time or more. SRS is ready to bounce from the falling wedge, positive divergence and oversold stochastics which means the housing data this week should be negative and not the good news that traders expect. Projection is for SRS to move up from here and the current price levels may serve as a developing head of an inverted H&S pattern that will need a right shoulder as we move forward. If the housing data this week is all positive, two of you will need to obtain the stretcher behind the door at the excahnge and carry good ole Keystone out.
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