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3 key charts show just how fragile stocks are right now

Aug 14, 2017, 22:51 IST

A wooden model bridge bends under the weight of paving stonesVincent West/Reuters

The most complacent stock market in history was shocked to attention last week after fiery comments from President Donald Trump about North Korea ratcheted up geopolitical tensions worldwide.

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The S&P 500 dropped 1.5%, the most since May, as investors sought the relative safety of Treasury bonds and gold, clearly shaken by the potential for military escalation.

The benchmark index bounced back in a big way on Monday, climbing more than 1%, showing that there's still appetite for buying on weakness. It's a dynamic that's played out time and time again over the eight-year bull market, and it's helped keep the rally afloat through some tough times.

But there are cracks forming in the foundation of the equity rally slowly but surely. If you know where to look, there's no shortage of signs investors are feeling increasingly uneasy.

Here are three charts that show stock traders are not as confident about the market as Monday's relief rally would have you believe:

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