Chart of the Day - REITs testing resistance

Chart of the Day

For some perspective on the all-important US real estate market, today's chart illustrates the 2004 to 2009 trend of the Dow Jones Equity REIT Index. As today's chart illustrates, the unwinding of the real estate/credit bubble initially (early 2007 to mid-2008) occurred at a fairly moderate pace. That pace accelerated (mid-2008 to early 2009) as major financial institutions began to collapse. When all was said and done, the peak to trough decline of the Dow Jones Equity REIT Index ended up being 75.8%. Since the trough of early 2009, REITs have rallied and are currently up 38% (though remain 66% below the 2007 peak). As today's chart illustrates, the Dow Jones Equity REIT Index remains within the confines of a moderate downward sloping trend channel and currently trades near resistance.

Notes:
- Where's the market headed? The answer may surprise you. Find out right now with the exclusive & Barron's recommended charts of Chart of the Day Plus.

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Quote of the Day
"Where all think alike, no one thinks very much." - Walter Lippmann

Events of the Day
July 14, 2009 - Bastille Day (France) - Baseball All-Star Game
July 16, 2009 - British Open golf tournament begins (ends July 19th)

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