The following chart shows the Russell 2000 Index versus the S&P 500 in the lower inset, and the S&P 500 in the upper inset.
When small-cap stocks begin to underperform larger-caps, it's a risk-off signal and as you can see small-cap performance has fallen off a cliff versus larger-caps.
The chart above shows high-yield "junk" bonds versus T-bonds. When high-yield bonds begin to underperform T-bonds, it's a risk-off signal and the relative performance of junk bonds broke trend last month.
I've discussed the above chart in the past. When cyclical stocks underperform staples, breaking through the 100-day moving average to the downside, it's a risk-off (sell) signal. A risk-off signal was generated late last month.
I've also discussed how mortgage REIT Annaly (NLY) has triggered a risk-off signal, and how the outperformance of health care stocks has not been a bullish sign for the market.
After being bullish since last September, color me bearish....