Two good indicators of underlying market sentiment are bitcoin and the high yield market. Both have diverged from the recent exhuberance in equities and pose a warning.
Bitcoin is down five days in a row and the selling is intensifying.
Bitcoin daily
The high-yield ETF is also selling off and nearing the August lows. Volume is low but that price action is concerning.
Contrast both of those with the S&P 500, which is down 1% today but had rallied non-stop for a month before that.
