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
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.

SPX daily