High-yield corporate debt (via the iShares High Yield Corporate Bond Fund (ARCA:HYG)) has put in an ominous double-top and begun to move lower in aggressive fashion:
And yesterday afternoon, equities broke down from a 2-week topping formation in the S&P 500:
Notice how realized volatility has nearly doubled from the late-August historic lows. Meanwhile, volume has accelerated as price has broken below the minor support level at 1990.
Interesting how warning signs are mounting just as Wall Street analysts have turned bullish on equities in record numbers:
In a time of huge complacency and risk seeking behavior, a healthy dose of caution would be well advised…..