![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-lBnKbLOHzQbOtJuaSeGZ_TeByq49yqjZAQ3iK6Qi0G8Qu5SoF70nzdPK9Sqyup2G8Ztir3q0QFkLONjm-mAA5WkKXN9dEXRFkTsBT2zTzrEWUMERVA6nah21RwRwlTTxM_5SIA4GstY/s400/Chart+of+SPY1.gif)
Let's start with a view I don't often use -- a simple line chart. Notice that prices have broken through resistance at B but have also broken upward sloping trend line A. Prices are currently in an upward sloping pennant pattern.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjC_G-67hyphenhyphen9QEtGlrldcWPb_vpS203sDyUoAZxZk84rUJWHC-HDXhFZBcbkaxvHGkOTz5AEz7GdD6mY_w2T8IA1SsAm9CKLP8nCFtbtKkbXuLA2-XKwXrAKrwerAmxsx8P5E8pg6I2qvto/s400/Chart+of+SPY2.gif)
A.) Notice that last week all the bars were weak -- all the bodies were small with fairly long wicks. In addition volume was weak (B).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6ZOkbIm88JwJI2EKcj8gW3MdLGWZnyEa9TCEUQyo_YMRPUsX63vRLQtsMUzwb-xxCZn1FDha65mTEvy0vMCFOsUY0927KxhnuYInLp_C_r5KyR44IxeDP-QKC9gy1op0ja_izSYSypTo/s400/Chart+of+SPY3.gif)
Notice that prices could not keep their upward momentum on any day last week. That tells us traders were extremely concerned about something.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj4rXCz1vV4fndRh8HrxOa3toCCe1MKved4WWwGqCDmra0sq7_iQLD4yNd4kCw1xBgvyxQ2kkxkElYdV_G0XHo6W6xm_Afeu5XSOyY5x-E1oW_l1N8Nzl4Fr9pY_v_l9d2l3zaClwzH2YQ/s400/Chart+of+SPY4.gif)
A.) The EMA picture is still great -- the shorter EMAs are above the longer EMAs, all the EMAs are moving higher and prices are above all the EMAs. But
B.) The MACD has given a sell-signal and
C.) We're seeing the A/D line stagnate.