Lennar Corporation (LEN) Stock Forecasts

Summary

The calendar turned to September, historically the worst month of the year, and suddenly everything went wrong and into a handbasket. Once again, the heavily weighted Information Technology (XLK -4.6%) sector was the biggest drag on the stock market. The group was once again dragged down by once-beloved semiconductor stocks, as the major semi indices were crushed by 7% to 8%. Since July 17, the iShares Semiconductor ETF (SOXX) and the VanEck Vectors Semi ETF (SMH) have fallen by at least 6% on three separate days. All three of those days were on very heavy volume, a clear sign of institutional distribution. We started seeing distribution in the semis and the Nasdaq 100 (QQQ) in the middle to late July. Most of the major semis have lost ground on their 50-day moving averages for the second time since late July, while a handful are breaking below their more important 200-day moving averages and approaching their early August lows. The QQQ fell 3.2%, breaking out of a developing bull flag and closing near a 38.2% retracement of the rally since the intraday low of August 5. We did see a small 5/13 exponential moving average crossover sell signal, reversing the buy signal