what is this dance my dogs our doing?

every day , owning 2 dogs brings something new.

anyways, im thinking this dance is my 2 dogs (F) choosing who is going to be top bitch (besides humans of course)
this morning, Daisy goes up to Dusty and stares at her, but her hackles (or hair on her back ) goes up, Dusty (older dog 2) will almost bow down and jump side to side with her tail waggin, at first I thought they where playing but why would Daisy (8) months, hair stand up. and why would she do a stare?
theres no barking or anything, occasionally Daisy will nip Dusty and jump up, not bite but nip. If I make a noise or get up, it all stops and they run in opposite directions.
weve had Daisy for 6 months, and Dusty for 2.5 yrs. My hardest thing figuring out is when they are playing and when they are not getting along.

Staring and raising hackles could be a sign of play / excitement. Nipping can also be a sign of play. It's very difficult for us to tell whether the dogs are fighting or playing without actually seeing it, but it sounds from your description like they're just playing.