$IYR: Is a Real Estate Crash Imminent? Should You Brace for Impact?

Hello Traders! In today‚Äôs article, we will look at the past performance of The Real Estate ETF ($IYR) and how we saw it trading lower since Sep 2022.

$IYR (Real Estate) Weekly Elliott Wave Analysis Sep 25th 2022:


In the initial article from September 2022, we expected the sell off in the sector to find a relief bounce in (B) and continue lower towards the Blue Box area. Lets take a look at the latest Elliott wave path that is unfolding.

$IYR (Real Estate) Weekly Elliott Wave Analysis Mar 26th 2023:


As expected, the sell off unfolded in a 5 wave impulsive sequence in (A) which found buyers and bounced in a 3 swing (ABC) structure to reach the equal legs area at (B). The reaction from (B) in the shorter cycles is also showing 5 waves in red 1 with divergence. A bounce in red 2 should unfold but is expected to fail in 3 or 7 swings and continue lower towards the Blue Box area at 73.53 – 56.27.

There is a bullish sequence against March 2020 lows. We like to buy the dip in 7 swings at the blue box for a continuation to the upside as long as the March 2020 lows at $56.27 remains intact.

To conclude, we don’t believe in a crash but a correction is clearly unfolding and soon buyers will appear at the Blue Box area for a reaction higher. Once the reaction higher unfolds, we will be able to tell if the low is in place and continue higher or more downside will follow.

Source: https://elliottwave-forecast.com/stock-market/iyr-real-estate-crash-imminent-brace-impact/