Strong Retail Bulls Try to Chase off Weak Hands

I have been noting the retail/consumer discretionary complex as acting much better over the past week or so. That seems to be even more pronounced today, as retail was bullishly diverging from the market while the Dow was off 100 this morning.

Consider the XRT daily chart below (I discussed the weekly timeframe on Sunday). There is little doubt we have a well-defined trading channel here since September. This time around at resistance, price looks to be bull flagging. Of course, confirmation is necessary before bulls can get too giddy. However, it does indeed look promising.

Here are some results my a retail screen (and cyclicals in general) I run inside The PPT.