Sales of existing homes fell to 85.7 in September, plunging sharply from the year-ago reading of 107.6, according to the National Association of Realtors. However, September's reading was up slightly from the prior month, surprising analysts who were looking for a decline of 1%. While the PHLX Housing Sector Index (HGX - 145.40) is still poised for a loss on the day, last down about 0.42%, the index is off its lows of the session. Meanwhile, housing leaders Beazer Homes and Lennar are up sharply in late day trading. BZH was last seen higher by about 4.5%, while LEN has added more than 5%.

Digging a bit deeper into the technical situation for the pair of housing concerns, BZH has actually pulled its 10-day and 20-day moving averages into a bullish cross, which could be a positive sign for the equity. Meanwhile, LEN has overcome its 10-day trendline, but is still looking up at staunch resistance from its 20-day moving average.