Friday, November 11, 2005
A few months ago I thought Sears Holdings would move above the 200 level. But since then corporate developments knocked this stock out of its bull market leadership position.
I think that SHLD is forming an important low near the 2/3 division point of its all time range of 14.72 to 163.50. I expect one more brief dip below the low of the recent trading range. The market will probably get down to 108 or so ( 2/3 of the all time high is 109) to shake out the remaining weak longs. Then I think we will see a rally to a lower top near 150 or so before another long downleg starts.