FIVE is technically constructive with strong relative strength and an uptrend, despite bearish momentum divergence.

Then we have three in consumer discretionary Planet Fitness, Royal Caribbean, and Five Below.

And three of the stocks we're going to talk about here, Five Below, Schwab, and Biomear are all in that leading quadrant. And what that means again is that they're uh showing strong relative strength, meaning they're generally outperforming their peers, but the momentum is also uh strong in the relative strength uh indicator, right?

So they're so the uh the relative strength is strong and uh trending in the right direction is the way I would think about it.

So, let's focus first on some of those stocks that are in that leading quadrant. We'll start with five below, which I would say out of all of these stocks, clearly the most constructive technical configuration.

Now, why do we say that? I mean, first off, when we look at the chart, I mean, it's just this long, you know, sort of consistent uptrend with a notable exception from midappril to early July.

Pulled back quite a bit and even undercut the 200 day moving average, but after it blow broke below the 200 day for a couple weeks, look at how it recovered back above the 200 day, back above the 50-day, and it really hasn't looked back since.

Most recently, we've actually achieved a new 52- week high as it broke above that April peak. It's kind of holding in there after hitting that uh previous high. It's not really breaking down, not really breaking out anymore.

Sort of holding steady. That's kind of a general structure that I that I found u pretty helpful over time. We can see like a number of times here in like summer of 2025, certainly spring of 2026 where we've sort of consolidated, pulled back to initial moving average support and a couple weeks in that consolidation could set us up for the next move higher.

So in this sort of a a condition again it's uh making higher highs uh in the last month also above upward sloping moving averages. The RSI is high but not excessive. So we're generally showing some strength there.

Um the relative performance is uh is consistently strong certainly in the last quarter and that's really what the RRG is driven off of right it's basically driven off of the direction of that performance like right the relative performance of uh of five below versus the S&P uh 500.

So if there's any caveat to this chart like anything that has me a little bit you know a little bit hesitant maybe it would be the bearish momentum divergence. So, you can see that the new highs in August were met by weaker RSI readings.

And we can see most recently as we pull back to the 20-day, the RSI is down here around 56. Not the end of the world. Still in the upper half of the reading, but it's just not really a strong momentum situation.

So, what would we look for here? A resumption of the uptrend of course would be would be uh very encouraging. Also, the RSI pushing higher. So, we want the RSI to push above 60 on that breakout higher.

And that would imply uh you know fresh new momentum to the upside.

So five low I would say out of these eight uh charts from my perspective probably the most constructive kind of all-around uh technical configuration.

So while some of these other charts like Five Below, Charles Schwab, Biomear already showing that strong relative strength, which tells me they're outperforming, they're in good uh technical shape,