Housing stocks are getting wrecked.
The XHB homebuilders ETF sank Monday, extending its longest losing streak on record into a 14th straight session. Since the beginning of the year, it has tumbled 16 percent.
One technician said the demolition in the S&P homebuilding index presents an opportunity.
"There is a well-defined trend line for this index, and we've come down to it for the third time," Carter Worth, head of technical analysis at Cornerstone Macro, said Friday on CNBC's "Options Action. " "We're going to get a little bit of a bounce, so I want to play for that off the line."
The homebuilding index bounced off that trend line stretching back four years at the beginning and end of 2016. The summer's sell-off has taken it back down to that level.
"We're also down to support, the level from which we broke out," he added. "We've retraced the entire move."
The index bumped up against the 775 level through 2015 and 2016 before breaking out at the beginning of 2017. It is now testing that support line after falling below 800.
The ITB home construction ETF is also due for a rebound after this year's weakness, said Worth. The ETF is the worst iShares performer this year, falling 22 percent since January, after reigning as the best performer in 2017.
"People loved it in December. Here we are nine, 10 months later, and guess what, it's the worst performer. People loved it at the high, it turned out to be exactly the wrong thing to love," said Worth. "My hunch is there's bounce potential just as there was sell-off potential."
The ITB ETF was slightly higher Monday, though remained nearly 4 percent lower for the month.