If middle-class consumers flocked to discount retailers from Big Lots (BIG) to Wal-Mart Stores (WMT) during the Great Recession, does an improving economy mean the beginning of the end for the dollar stores? From a short-term trading perspective, the most interesting dollar retailer is Family Dollar Stores (FDO). Shares of FDO have pulled back for five days in a row, the last two in technically oversold territory, just above their 200-day moving average. The last time FDO was as oversold as it is heading into trading on Friday, was six weeks ago in early January. Then, a short, sharp drop ended a pullback that took the equity into technically oversold territory, and lower for four out of five days. After seven days of treading water, the stock began a three-day climb to new, short-term highs, and a gain of more than 4% from that initial oversold close. Elsewhere in the sector, stocks like Dollar Tree (DLTR) and Dollar General (DG) have begun to trend sideways, after rallying into overbought territory near new long-term highs. Heading into Friday's session, shares of Pricesmart (PSMT) were trading near oversold levels after selling off for two days in a row.

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