Winning the Battle But Losing the War

Even though DuPont defeated Nelson Peltz in Peltz's campaign to become more activist and land seats on the Dow component and chemical titan's board, the market is not responding as though DuPont has just snagged a major victory. 

In fact, observing the chart of the stock since late-2012, the Peltz defeat could, ironically, prove to be a major inflection point. An old Wall Street axiom is that "the trend is your friend until it bends in the end."

And observing the basic support trendline I have drawn, below, you can see the trend clearly bending, if not on the cusp of breaking. I view any failed efforts by bulls to regain $74 imminently as a sign to keep the stock on watch as a short going forward, into weak bounces. 

DuPont may have won the battle versus Peltz, but perhaps they did so at a costly price.