Foot Locker: Turn That Retail Frown Upside Down

Markets are settling into a bit of a scrum into the weekend, with bears yet to push the envelope off the morning weakness (See: a red VXX as I write this). 

One bullish aspect of the action of late would be retail plays finally showing some heart, specifically in the face of yesterday's harsh selling in the sector. Recall how long the retail stocks, as a group, folded up like a cheap suit at the first sight of adversity for the longest time.

Now, however, a name like Foot Locker is surging off yesterday's heavy selling. On the updated FL daily chart, below, after earnings this classic retail brand is making a play at breaking out for a new leg higher. You are talking about a chart with rising long-term moving averages below price, which is something plenty of retailers cannot claim, with JCP the whipping-boy-du-jour a good example. 

Still, FL can defy the laggards in the group and ought to now be watched for a long entry since earnings are out of the way, especially over $75.