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The Home Construction Storm: ETF Crash and a Builder on a Dizzying Downward Spiral

The housing market drives much of the U.S. economy, and now we’re seeing how the housing market can have a big impact on the stock markets. Home Construction ETF (Symbol: ITB) recently broke down after a steep decline, and homebuilder Lennar Corporation (Symbol: LEN) set up for further downside. Home Construction ETF is an exchange-traded fund that tracks the performance of the homebuilding industry. It was recently trading in the 20-21 range before it broke down and traded as low as 16. This was a more than 25 percent decline, which is rather significant. It’s unclear when, or if, the ETF will rebound from this sharp pullback. Lennar Corporation is one of the largest homebuilders in the United States and its stock was also impacted by the homebuilding industry’s downturn. The stock was trading in the 42-44 range, but it has since declined as low as 36. The stock is down 15 percent from its recent highs. It appears that the stock is on track for a further drop, despite the fact that it is one of the larger homebuilders in the country. It will be interesting to see how the homebuilding sector responds to the recent market turmoil. The Home Construction ETF and Lennar Corporation both have broken down and it could be a sign of further weakness in the housing market. It’s essential for investors to monitor the housing market and these two stocks to get an idea of where the market may be headed. The homebuilding sector has been one of the major drivers of the U.S. economy for years, and it’s important for investors to watch the performance of this sector. The breakdown of Home Construction ETF and the setup of Lennar Corporation could be an indication of further downside in the market, so investors should pay careful attention to this sector to stay up-to-date with the latest market news.