Here are the 5 things that you might see near a market top:
1. Commodities rolling over
2. Deteriorating market breadth...
...with leadership sectors (energy, financials, and technology) getting hit especially hard.
S&P 500 1-month heat map
3. Volatility and volume expansion
S&P 500 daily with average true range below:
4. Sharp increase in high risk lending
Cov-lite loans percentage of new issues and percentage of outstanding loans
5. Record levels of equity investor margin debt
And the best part is that they are all happening right now…..