Let's start with a two-day look at the SPYs, which have been in a clear downtrend (a). Also note that once they moved through key support levels (b and c) the price decline accelerated. Finally, there was strong end-of-the-day selling, indicating traders did not want to keep shares overnight.
On the daily chart of the SPYs, notice that prices hit resistance at the 50 day EMA. The MACD is approaching the signal line (b) and we're seeing some money move from the market (c and d). In short, the market is in a short-term (less than a week) sell-off. The 200 day EMA is a key level to watch for.
While the SPYs have been dropping, the IEFs (and other Treasuries) have been rallying (a). Note that prices have moved through two key resistance levels (b and c) over the last few days.
On the daily chart, prices are still in a clear uptrend with the EMAs in a very bullish posture (a). While momentum is dropping (b), we're seeing money flow into the market (c and d). I've been watching this market very closely as a result of the recent "flight to safety" in the markets. Most importantly, I've been watching the longer trend line in the chart and looking/waiting for prices to more through that level as a sign the flight to safety is over. So far that has not happened.
Industrial metals have been trading between ~17.75 (a) and 19.00 (b). Along the way we've seen two triangle consolidations (c and d) and a head and shoulders pattern.
On the daily DBB chart, note the area in the box (a) was described in more detail in the chart above. Also note that while the MACD is rising (c), money is flowing out of the security (d and e) -- never a good sign. Also note the EMAs -- the 10 day EMA is moving sideways, but the others are still moving lower.
Overall, the markets are still very defensive -- stocks are losing the steam in their rally, Treasuries are still moving higher and industrial metals are moving sideways.
