Update: Retail stocks contrast fundamental upside vs. eroding technical patterns

Rationale: One key observation has been the contrast between continued fundamental upside support for retail names as technical patterns have suggested quite the contrary. As we mentioned in previous updates, retail names are suspect as price patterns continue to head lower. The Kohl's (KSS) chart above is heading lower to daily support levels. This type of price action suggests a potential breakdown with lower prices to occur. Other similar charts include: TGT, TJX, AEOS, YUM.