Stocks broke down badly over the last two days.

The line in then sand for the S&P 500 was 4,460. Stocks broke through it on Friday. They failed to reclaim it yesterday. This is quite bearish.

Unfortunately, there’s more room to go for this drop. High yield credit which usually leads stocks is showing us what’s coming.

The picture is even uglier when we take a look at market breadth. Again, this usually leads the index.

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