With news of an imminent housing double-dip, home improvement mega-chains Home Depot and Lowe’s suffered from selling pressure in the past few weeks, seemingly over the forth-coming collapse in the US housing market. These retail names, in the short-term at least, are definitely in for a breather. Look at Lowe’s, for example:

Not only is the relative strength index (RSI) below 30, which tends to signal an oversold condition, the price also closed below the lower extremity of the bollinger bands. This action tends to reverse itself very quickly. While this can mean absolutely nothing, I would prefer to be long the stock at this particular moment.

At the 21.30-21.40 range, there is also strong support. While not the best stock in the long run, LOW definitely seems poised to bounce, once it corrects a percent or two more. If the S&P 500 manages to hold support at the 1090 level, which it seems sure to test tomorrow, keep an eye on this stock.