It's the Same Drill for Under Armour

In front of a Halloween earning date tomorrow, Under Armour is reversing higher this morning in the face of a Bank of America downgrade. Although it failed miserably, the same type of blueprint which applied to the likes of Chipotle (CMG) now applies to UAA, in terms of looking for a potential bottom. 

Simply put, we want to see signs that sellers are simply exhausted and washed up, and it sure is promising to see a beaten-down stock rally in the face of a downgrade. Frankly, though, we will not know the true answer until after earnings, as the market is almost assuredly looking to infer a better answer from the numbers and guidance on the call. 

On the UAA daily chart, below, bulls had better keep fighting at the $16 level, or else I suspect a CMG-like floodgates opening moment could easily materialize in the face of any disappointment tomorrow.

On a bright note, in the retail space we are seeing some strength in footwear stocks, with the surge in DECK of late just one example.