![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjMjMi6RzcYO_LhrfzP1FALWJRmz-_Cdy8tMaPWbHlP2DNx0PzIZeX43eR0WiAySDwyozzEQdwEVF-Yhf0KcRTlKNKHQCMJgDpVVNvCV2KFvdzSRxkrVbhpPVGZFp4w4RMbzZLrevME958/s280/spy+1.jpg)
Over the last five days, notice the SPYs are forming a rounding top. In addition, the rally up was grinding -- prices were moving higher, but there were very few strong bars or rallies; instead prices were inching up and then giving back a fair amount of ground. In contrast, the last two days we've seen a sell-off with strong moves lower, printing very strong bars.
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Yesterday, prices rallied to the 68.2% Fibonacci level (a) before selling off to the 38.2% Fib level. Prices then moved sideways and hit the EMAs before moving lower (b). After selling off, prices moved into a grinding rally, but broke the trend and again moved lower (c). Prices then sold-off, rallied to (d) and sold off again.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgmbcSladVssHPcdhuSY9koQxKxN8EF5JtZNrTQSh8foTSB83vaMszdMQXe_jimb-A3aZ4nl3tFqHAmfRzMPrdCFjKwEjVDMHbx2eeLL7Q08FNhPDR6aMlnMfmq4R_kS8L7D5d1SIw1TEQ/s280/Chart+of+IEF.gif)
Over the last few weeks, notice that Treasury prices have had several gaps lower (a) and some very strong bars lower (b) as well. This is a strong sell-0ff.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjAp_yDq-l3gg1Fp39xCsnT2uDgO_p0G0ZhjLjZ61YDEUMSW8NQIdhv2QSu-TGhH7Ep75zOHp0cMTHO7Qs5XDQaueYT6mFgDnTsc_I6_EgtIKdLkfjj1VYL7MOERH2Up8zdafujXNdP18M/s280/Chart+of+UUP.gif)
A closer look at the dollar shows the price/EMA situation is still mired in indecision. The EMAs are more or less moving sideways with prices trapped there.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgB33rKjbdrqy8powFBLNcZ8AOX-89pxdir4NijpQoZJj629b8rVihkNFundxkpqrLcm-yust5jMn6pWvuZKjrfxVG_t7WMhId5iWil3-F2EwdccjYpz7EBcHXUPeUA2jIJwR0W5GBlrRo/s280/LUMBER.jpg)
Lumber was in an uptrend (A), which it broke at (B), when prices started to move lower. However, prices have started to rebound (D) and momentum is increasing (C). I use lumber as a proxy for the new home market.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi69NogQnkQ7CFCuyVRET-2EeDR1s6Gn8FXUfHp2rWEqciNa_dd2KJiw10281LfdfWzZo7cD8UJMWU4324yNdUzPjZNNmXbc2e4CHHYnzE3iBdDhw6oZ8xH7lMdC5BbM4vIt-AQkTMmhC0/s280/COPPER.jpg)
Copper is still in a strong uptrend (A). Although prices dipped a few weeks ago (B), they are now back above the trend line (C). Also note the MACD is increasing (D)and the EMAs are in a very bullish orientation.