One sentiment indicator I look is the the relative price of the Barclays Spider High Yield Bond ETF (ticker JNK) versus the Investment Grade Corporate Bond Fund (ticker LQD). This measure has turned down hard in recent days. The measures has historically tracked the price trend of the S&P 500.
Generally speaking, it is the direction of the indicator that matters and not necessarily the peak and troughs in the trend. However, the magnitude of the change in the relative price along with the break in the trend are important, and could suggest an end to the risk-on trade.
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