A bit of negative economic data have created conditions for a bit of profit taking in early trading today. In the latest report on the housing market, the National Association of Realtors reported that pending home sales fell further in August, arriving at their lowest level in more than 6 years. According to the Association, the pending home sales index fell 6.5% in August after dropping a revised 10.7% in July. Pending home sales are down 21.5% compared with a year ago, and are down 22% compared with 6 months ago.

Despite the news, the PHLX Housing Sector Index (HGX) has added about 5 points, or 3.15% on the day, driven mostly by a broad upgrade of the housing sector by Citigroup yesterday. Elsewhere, the iShares Dow Jones U.S. Real Estate Index Fund (IYR) has added 0.41% on the day, pulling back from its intraday high.