Sector RS Rank Oct 22: Homebuilders Lead, Chips Fall

💡 Today's US market in three lines

① Today's three stocks: Allegion · Trex · Academy Sports + Outdoors — a lock maker that jumped +11% on earnings, a decking maker at a one-year closing high, and a sporting goods retailer at a one-year closing high.

② On October 22, the S&P 500 fell -1.21% to 7,663.43 while the Dow edged up +0.02% to 52,867.98. Only 42 of the 129 ETFs in our universe closed higher, but 6 of the 11 sector SPDRs rose.

③ The iShares home construction fund rose +5.39%, while the iShares semiconductor fund fell -6.79%.

• 🧭 Why Leaders Keep Leading — Reading Sector Rotation Through RS and RRG

 

Today's Sector Relative Strength (RS)

Oct 22 Sector RS — 129 ETFs · RRG v2

• Chips broke down. Money moved into homebuilders, consumer staples, and banks. Most funds still closed lower.
• The S&P 500 closed at 7,663.43, down -1.21% or 93.74 points. The Nasdaq fell -2.60%, or 694.00 points, to 26,008.86. The Dow held flat, up +0.02% or 11.89 points, at 52,867.98. The split showed up in style funds too. The Russell 1000 Growth fund (IWF) fell -2.79%, while the Russell 1000 Value fund (IWD) rose +0.29%. The equal-weight S&P 500 fund (RSP) gained +0.73%, so the average stock did far better than the index.
• Breadth was weak. Only 42 of the 129 funds in our universe closed higher, 86 fell, and one was flat. Yet six of the 11 sector SPDRs rose. Consumer staples led at +3.31%, followed by utilities (+2.07%) and health care (+1.32%). Technology fell the most, at -3.29%, followed by communication services (-1.42%) and industrials (-0.94%).
• The selling started with earnings. Meta fell -6.98% after its report, and Tesla lost -3.08% despite beating estimates. Reports said investors again questioned how much AI spending will pay off. Lam Research dropped -11.76% after its results. The VIX jumped +14.09% to 19.03. The 10-year Treasury yield fell to 4.95% from 5.15%. Brent crude rose +3.72% to $112.87 a barrel, its highest level since May, according to reports. Gold futures fell -2.66% and Bitcoin -3.14%. Weekly jobless claims fell to 194,000, the fewest in three months.

 

Today's Leading Sectors TOP 5

• Basis: top 5 by 1-month RS rank on the 'Sector RS (US)' sheet — 129-ETF universe, October 22, 2026. Daily moves are measured from Yahoo closing prices. Trend columns compare price to its 1-month, 1-quarter, and 1-year moving averages.

ETF	1-Day	RS Rank 1M	Short-Term	Mid-Term	Long-Term
WisdomTree Cloud Computing (WCLD)	+1.23%	99	🔺	🔺	🔺
Health Care Select Sector SPDR (XLV)	+1.32%	99	🔺	🔺	🔺
Consumer Staples Select Sector SPDR (XLP)	+3.31%	98	🔺	🔺	🔺
SPDR S&P Retail (XRT)	+2.92%	97	🔺	🔺	🔺
iShares U.S. Healthcare Providers (IHF)	+1.53%	96	🔺	🔺	🔺

• All five rose on a day when most funds fell. All five also sit above all three moving averages. XLV moved back up to 99 and now shares first place with WCLD. XLP ranks 98, and its 1-month gain of +8.0% is close to XLV's +8.1%. Defensive groups now hold three of the top five spots.

 

Why They're Strong — Sector Issues

SPDR Consumer Staples XLP Daily

· Consumer staples (XLP) — Procter & Gamble rose +5.58% after its report. Revenue grew +4% to $23.28 billion, ahead of estimates, according to reports. The company kept its full-year targets but warned that raw material, energy, and freight costs will rise over the next two quarters. Kimberly-Clark gained +5.33%, Colgate-Palmolive +4.27%, and PepsiCo +3.07%. Walmart rose +2.82% and Costco +1.99%.

SPDR Health Care XLV Daily

· Health care (XLV · IHF) — Health care rebounded after Wednesday's drop. Quest Diagnostics rose +1.82% after beating estimates and raising its outlook, according to reports. XLV is up +2.32% over five sessions, and IHF is up by the same amount. Retail also held up. XRT gained +2.92%, and its 1-month gain is +7.7%.

 

1-Month RS Trend

45-Day RS Trend — 5 Sectors

• The 45-day chart tracks homebuilders, regional banks, high-dividend REITs, fabless chips, and junior gold miners. Yahoo did not return October 21 prices for most funds, so the lines skip that day. The iShares home construction fund (ITB) hit a low of 2 on September 18 and has climbed to 74 on this price-based line, its high for the period. The sheet ranks it 81. The SPDR regional bank fund (KRE) is at 77, up from 9 in late August. The sheet has it at 62. The Global X SuperDividend REIT fund (SRET) rose from 3 on August 26 to 52, against 43 on the sheet. The VanEck fabless semiconductor fund (SMHX) reached 100 on October 13 and is down to 17, while the sheet ranks it 49. The VanEck junior gold miners fund (GDXJ) was near 100 in early September. It is now at 9 on both measures.

 

RS Breakdown Warnings (big 5-day drops)

· The chip funds lost more than 55 points each in five sessions. SMHX fell -66 points, from 83 to 17, and the iShares semiconductor fund (SOXX) also fell -66 points, from 78 to 12. The VanEck semiconductor fund (SMH) dropped -58 points, from 76 to 18. SOXX is down -7.58% over five sessions. On the sheet, SMHX went from 68 to 49, SOXX from 56 to 40, and SMH from 61 to 47.

· The US natural gas fund (UNG) fell -69 points, from 100 to 31. It is down -10.82% over five sessions, and its sheet rank fell from 97 to 44. The technology SPDR (XLK) lost -38 points, from 78 to 40. Its sheet rank went from 72 to 58.

 

RS Rebound Signals (sharp bounces off the bottom)

· Banks rebounded hardest. The Invesco KBW bank fund (KBWB) gained +44 points in five sessions, from 19 to 63. KRE added +43 points, from 34 to 77, and the iShares regional bank fund (IAT) +39 points, from 40 to 79. On the sheet, KBWB rose from 24 to 46, KRE from 46 to 62, and IAT from 35 to 65.

· The SPDR pharmaceuticals fund (XPH) gained +31 points, from 22 to 53, and SRET +28 points, from 24 to 52. Their sheet ranks rose from 27 to 48 and from 28 to 43.

 

Today's Top Rising Sectors TOP 5 (by 1-day %)

• Basis: top 5 by October 22 closing move — 42 of 129 rose on the day. RS ranks from the 'Sector RS (US)' sheet.

ETF	1-Day	RS Rank 1M	Short-Term	Mid-Term	Long-Term
iShares U.S. Home Construction (ITB)	+5.39%	81	🔺	🔽	🔽
SPDR S&P Homebuilders (XHB)	+3.77%	72	🔺	🔽	🔽
Consumer Staples Select Sector SPDR (XLP)	+3.31%	98	🔺	🔺	🔺
SPDR S&P Retail (XRT)	+2.92%	97	🔺	🔺	🔺
iShares U.S. Medical Devices (IHI)	+2.71%	90	🔺	🔺	🔽

• Housing led the gainers. ITB and XHB are back above their 1-month averages but still below their 1-quarter and 1-year averages. ITB is down -11.7% over one year. XLP and XRT made both lists. They rank near the top and also posted large daily gains.

 

Why They Rose — Sector Issues

iShares Home Construction ITB Daily

· Homebuilders (ITB · XHB) — Builders rallied as Treasury yields fell ahead of next week's Fed meeting, according to reports. Lennar jumped +8.69%, KB Home +7.39%, D.R. Horton +6.25%, and Toll Brothers +4.47%. PulteGroup rose +5.84% even after its revenue fell -11% and missed estimates, according to reports. Building product makers joined in. Allegion, one of today's three stocks, rose +11.02%.

iShares Medical Devices IHI Daily

· Medical devices (IHI) — Device makers made back Wednesday's losses. Medtronic rose +3.83%, Intuitive Surgical +3.67%, Boston Scientific +3.37%, and Stryker +3.19%. We found no single headline for the move. IHI is up only +1.59% over five sessions. It ranks 90 but is still below its 1-year average.

 

Leading Sectors: Consumer Staples, Health Care, Homebuilders

• ① Defensive stocks took the lead. XLP ranks 98 and gained +3.31%, the largest daily gain among the top 10 funds. Its RS rank on our price line rose from 84 to 98 in five sessions. Investors bought steady earners on a day when AI stocks fell.
• ② Health care held first place. XLV ranks 99, and IHF ranks 96. Both sit above all three moving averages. XLV has ranked 96 or higher in each of our last four reports.
• ③ Homebuilders moved up from the middle. ITB ranks 81 and rose +5.39%, the biggest gain in our universe. The weak side was chips, precious-metal miners, and speculative themes. SOXX fell -6.79% and SMH -5.99%. The junior gold miners fund (GDXJ) lost -6.75% and the silver miners fund (SIL) -6.65% as gold fell. The Roundhill meme stock fund (MEME) dropped -9.83%, the worst move in our universe.
• ④ The last report covered the October 21 close. Its three picks, measured from that close to Thursday's: Netskope +1.79%, Atlassian -1.04%, and ServiceNow +2.53%. The S&P 500 fell -1.21% over the same session. All three beat the index. Atlassian fell but still lost less than the S&P 500. Netskope closed at $22.20, above its $19.82 checkpoint but below the $24.26 high it needed to clear. Atlassian closed at $223.16, above its $221.11 checkpoint. ServiceNow closed at $157.00, above its $139.55 checkpoint. Recorded as is.

 

Today's Three Stocks — Allegion · Trex · Academy Sports + Outdoors Stock Forecast

• Yahoo did not return October 21 prices for most stocks. The 1D and 5D RS ranks below therefore span one extra session. Daily and 5-day returns in the text use the October 21 close.

 

Allegion (ALLE) — 1-Month RS 93: An +11% Earnings Gap

Allegion ALLE Daily

RS 1D	RS 5D	RS 1M	1M Return	Held By
100	98	93	+14.7%	SPDR S&P Homebuilders

• Up +11.02% to $176.52, and +13.34% over five sessions. The stock is about 2% below its one-year closing high of $179.77 from February 6. Allegion makes Schlage locks, door hardware, and access control systems. It reported third-quarter results before the open on Thursday. Revenue rose +9.6% to $1.17 billion, or +7.2% on an organic basis. Operating income rose +21.7% to $284.6 million. Earnings per share were $2.59, up from $2.18. Adjusted EPS was $2.60, up +13.0%. The company raised its full-year 2026 revenue and adjusted EPS outlook. The Allegion stock forecast depends on whether the price holds the gap after a one-day jump this large.

 

Trex (TREX) — 1-Month RS 93: A One-Year Closing High

Trex Company TREX Daily

RS 1D	RS 5D	RS 1M	1M Return	Held By
91	98	93	+15.7%	iShares U.S. Home Construction

• Up +4.59% to $51.07, and +10.52% over five sessions. That is its highest close in at least a year, above $50.36 from October 28, 2025. Trex is the largest maker of composite decking and railing. We found no company headline for Thursday. The stock moved with the homebuilders as yields fell. For the quarter ended June 30, revenue rose +7.8% to $418.0 million from $387.8 million. Operating income fell -15.8% to $86.2 million from $102.4 million. Net income fell to $61.9 million from $75.9 million, and EPS was $0.60, down from $0.71. Sales grew, but profit went the other way. The Trex stock forecast depends on whether its third-quarter report shows margins recovering.

 

Academy Sports + Outdoors (ASO) — 1-Month RS 99: A One-Year Closing High

Academy Sports Outdoors ASO Daily

RS 1D	RS 5D	RS 1M	1M Return	Held By
84	93	99	+24.8%	SPDR S&P Retail

• Up +3.69% to $61.78, and +5.66% over five sessions. That is its highest close in at least a year, above $61.19 from February 25. Academy is a sporting goods and outdoor retailer with stores mostly in the southern US. For the quarter ended August 1, revenue rose +3.0% to $1.65 billion. Operating income rose +42.9% to $246.4 million from $172.4 million. EPS was $2.17, up from $1.85. Comparable store sales fell -0.4%, according to reports. The company raised its full-year adjusted EPS outlook to $6.50 to $6.90, from $5.95 to $6.35. The Academy Sports stock forecast depends on whether same-store sales turn positive.

 

Allegion · Trex · Academy Sports + Outdoors Stock Forecast Checkpoints

· Allegion stock forecast — The stock gapped up +11.02% on earnings. Watch whether it clears $179.77, its February 6 closing high. A drop back under $159.00, Wednesday's close, would erase the earnings gap.

· Trex stock forecast — The stock broke a one-year closing high. Watch whether it holds above $50.36, the prior high from October 28, 2025. A drop below $45.35, its 20-day average, would put it back under its short-term trend.

· Academy Sports stock forecast — The stock is up +24.8% in a month. Watch whether it holds above $61.19, its February 25 high. A drop below $53.71, its 20-day average, would end the short-term uptrend.

 

What to Watch on Next Week's Calendar

• New home sales, Tuesday, October 27, 10:00 a.m. ET, then the Fed rate decision, Wednesday, October 28, 2:00 p.m. ET. ITB rose +5.39% on Thursday as the 10-year yield fell to 4.95%. This is the first Fed meeting since the September 16 rate hike. The decision will show whether lower yields can last long enough to help builders.
• SK hynix results, Tuesday, October 27, 8:00 p.m. ET; Microsoft and Alphabet results, Wednesday, October 28, 4:00 p.m. ET; Samsung Electronics results, Wednesday, October 28, 9:00 p.m. ET; Amazon and Intel results, Thursday, October 29, 4:00 p.m. ET. SOXX fell -6.79% on Thursday and lost -66 points on our RS line in five sessions. The memory makers and the largest cloud spenders will show whether AI spending still supports chip demand.
• September PCE inflation and third-quarter GDP, Thursday, October 29, 8:30 a.m. ET. China's Communist Party plenum runs Monday, October 26 to Thursday, October 29, and the Bank of Japan meets October 29 to 30. Gold fell -2.66% on Thursday as oil revived inflation worries, and GDXJ ranks 9. The PCE report will test that inflation fear, and the plenum will matter for metals demand.

 

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