Even though the SPYs have risen the last two days, notice that prices moved lower throughout the respective trading day. In short, this is not a strong rally.
The daily chart shows the latest action in more detail. Notice the very small candles that have printed over the last two days. In addition, prices have closed below the 10 day EMA -- which is the lowest EMA.
In addition, the IWMs are more or less trading sideways instead of rising. If the market were increasing its respective risk appetite, this index would be moving higher strongly.
The above charts tell us that the equity market rally is extremely weak and, barring a profound fundamental event, will probably peter out, sending the markets lower. Should this happen, our first price targets will be previously established lows.
Both the IEFs and the TLTs are consolidating after a sell-off. This could also be seen as standard profit-taking after a small rally.
Finally, it appears the dollar is beginning a long consolidation process by forming a symmetrical triangle trading pattern.
