Fashion Always Comes Back Around

On the back of the retail rally we noted late-last week, there is some more pronounced rotation taking shape this morning. 

Specifically, the "FANG" names, which compose a fair amount of weight in the QQQ (Nasdaq ETF) are being sold rather harshly, not to mention PCLN, as well. Apple has also been pulling back after its recent event, struggling to muster an oversold bounce thus far. 

As I write this, I see dip-buyers broadly speaking are having trouble holding a bounce off the open, as Nasdaq bears likely feel a bit emboldened given the near-term vulnerable leadership. 

That said, small caps, energy, and retail continue to impress.

A variation of the bull case headed into October would be something akin to what we are seeing this morning, with sufficient rotation below the surface prevent an all-out, deepening market correction.  

Regarding retail, there are quite a few plays from which to choose. But Ralph Lauren strikes me as an intriguing chart, given how well price has been holding back over its 200-day simple moving average (yellow line, below on the daily timeframe). 

RL is also sporting a "base over base" tight pattern, outlined below. Another push over $90 puts a new leg higher in play, with the obliterated retail plays possible coming back in fashion after quite a long time in the wilderness.