iShares Real Estate Trust (IYR) The IYR is one of the more popular actively traded Real Estate ETFs and trades more volume and options than XLRE. The group is up +28% year to date and showing excellent relative strength since the start of Q4. It has spent this month consolidating in a bull pennant pattern near 110 and the monthly VPOC. REITs are commonly more defensive similar to Utilities so with the market internals showing some caution signs the real estate names could see some rotation into year end and January. An upside breakout likely sees 114 as a first fib extension target and then 117.50. The IYR has strong support at its 55 EMA which was nearly tested last week as the candle reversed back up to close over the 21 day. YTD VPOC support comes in down at 103 which is also near its rising 200 day EMA. The ETF has held up during this recent sideways flag pattern and RSI staying above the key 50 level showing the uptrend is intact.

The ETF’s top holdings are AMT, PLD, CCI, EQIX, SPG, PSA, DLR, O, SBAC, WELL with the top 3 names AMT, PLD, CCI making up about 19% of the index. The best looking charts in the space that are within 10% of 52 week highs include PLD, SPG, PSA, DLR, AVB, EQR. One of the top 5 holdings in the group is SPG and has seen some notable bullish flows recently. On 11/2 the January 2023 $160 calls were bought for $1.8M. As the overall stock market starts to flash some warning signs in an extended rally, look to the Real Estate group to possibly see new highs and more defensive money flow to the upside.