Defensive Bifurcation:

In the discount arena, the group is dominated by a select few. TGT is a laggard now 42% off most recent 52-week highs and still feeling the wrath of the week ending 5/20 that fell nearly 30%. Currently, it is right at the WEEKLY CLOSE of that dreadful week. Best-in-breed DLTR has not been immune to the market’s frailness. It has recorded two recent WEEKLY losses of almost 20% in the weeks ending 5/20 and 8/26. OLLI a former favorite continues to deal with the blockade at the round 60 number as it attempts to carve out a double bottom base. Below is the chart of COST and it is trying to put the nasty 6-week losing streak the weeks ending between 4/15-5/20 that traveled from the rough round 600 number to 400. This week is showing good relative strength against the staples up almost 5% while the XLP is down fractionally. Perplexing is how chief rival BJ is only 4% from its recent peak while COST is still 20% off its ascent from early April.

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