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On Sept 1 we mentioned a key trendline, which if broken was going to be a signal of a move lower. As you can see from the chart below, SHLD did move below this trendline and has been trading within a sideways channel ever since. This chart is interesting because today's Q3 results sent the price of the shares toward the upper trendline of the channel. This barrier, which if broken would be a signal that we could see the price of SHLD head back toward its 52-week high, reached in July. A move below the lower support would confirm September's break below the ascending trendline and would likely add to the selling pressure that we've seen over the past two months. We'll choose to maintain a neutral outlook until we see a break beyond one of these identified trendlines.

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