Presented with little comment but there is a very serious disconnect between European credit markets (deteriorating into the close) and equities and now US is starting to crack with HY markets gapping aggressively wider. The volatility of the last couple of weeks, combined with last week's hedge capitulation, is exaggerating the moves but for sure risk-appetite is disappearing very quickly.
European credit dived quite signficantly into the close while equities limped sideways.
And US credit markets -especially HY have just started to crack wider - gapping notably as equities slide. And both the equity/credit SPY Arb model and broad risk-asset based CONTEXT model are both pointing to further deterioration in US stocks.