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Home-builder stocks ready to scale new heights

It’s clear in hindsight that U.S. home-building stocks got ahead of themselves in early 2013. They now appear ready for a bounce.

The Bespoke Investment Group presented a chart this morning that should interest the more trader-y segments of Inside the Market readers. I’ve recreated it here.

The chart illustrates the performance of the S&P 500 home-builder index from the beginning of 2012. Bespoke contends that after a prolonged price correction, recent performance strength has home-builder stocks breaking out of the negative trend and poised to move higher.