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Point & Go Figure: Anheuser-Busch, Kellogg, German DAX Index


The trend is a fickle friend.


Market Overview:
The NYSE Percent Above 50-day Moving Average Indicator is in Os, having formed a lower high since April, while the Nasdaq remains in Xs.

Meanwhile, the High-Low Indices for the NYSE and Nasdaq Composite both remain negative, in a column of Os.

The longer-term bullish percents for the NYSE and Nasdaq Composite are both still in Xs, but the larger pattern of lower highs there also remains intact, a significant bearish divergence, but a longer-term one. The more narrow S&P 500 and Nasdaq-100 Bullish Percents both are negative, each in a column of Os.

Charts of Interest:
Anheuser-Busch (BUD)
(Chart courtesy

Shares of BUD are nearing a double top break at 45, but face a tough road ahead in terms of overhead resistance...

Anheuser-Busch (BUD)
(Chart courtesy Thomson Financial)
The stock has recently registered a DeMark TD-Sequential sell signal suggesting probabilities favor a pause before a new attempt to invade the overhanging resistance.

Kellogg (K)
(Chart courtesy
K is moving toward the top of its one-year range marked by the red shading below. Note the PnF support level in yellow that coincides with trendline support from the March 2003 lows. A break of this support level would be a strong indication that the long-term supply/demand relationship has changed.

Kellogg (K)
(Chart courtesy Thomson Financial)
Meanwhile, as the stock has risen toward the top of its 52-week range, a DeMark sell signal has registered.

German DAX Index, Daily Chart
(Chart courtesy Thomson Financial)
The German DAX has registered a DeMark TD-Combo sell signal and could register a TD-Sequential sell signal too as soon as tomorrow.
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German DAX Index, Weekly Chart
(Chart courtesy Thomson Financial)
Look at this weekly chart of the DAX very carefully. See the many DeMArk sell signals that have registered going back to 2004? Most of these have preceded only very brief pauses in the uptrend from the 2003 lows. Ironically (or sadly, depending on one's perspective) while this is indicative of a strong underlying trend... for now, it also increases risk of a serious decline going forward making the trend an enemy to be feared, not a friend to follow.

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No positions in stocks mentioned.

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