The Homebuilders SPDR (AMEX: XHB) ETF may have formed a bottom.

When the news is at its worst, it's always a good idea to look at the charts. And the chart for XHB seems to be saying that the worst is over for the homebuilder sector.

The ETF bottomed out in the December-January period and has mostly bucked the general down trend of the stock market, although it seems as if there is work to be done for a while.

Yet, it's fairly obvious that money is moving into some of the homebuilder stocks as XHB is up some 40% from its bottom, a bull market's worth of gains in a couple of months.

From a long term standpoint, though, the fund still has to move above its 200-day moving average somewhere above 23 before the long term trend returns to the positive side.

But, one thing is clear, barring a negative turn at this stage of the game, it looks as if the bottom has been put in.

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