Here are the 5 things that you might see near a market top:

1. Commodities rolling over

CRB Index

CRB_Daily

 

2. Deteriorating market breadth with leadership sectors (energy, financials, and technology) getting hit especially hard

S&P 500 1-month heat map

Heat_Map

 

3. Volatility and volume expansion

S&P 500 daily with average true range below

SPX_Vol_vol

 

4. Sharp increase in high risk lending

Cov-lite loans percentage of new issues & percentage of outstanding loans

Cov-Lite

 

5. Record levels of equity investor margin debt

Margin_Debt

And the best part is that they are all happening right now…..