I have been mentioning the Rydex trader positioning as the most worrying indicator recently. On Thursday and Friday Rydex traders did an about face and positioned themselves much more conservatively. With permission from SentimenTrader.com the Rydex charts are shown below. While not at the levels seen this Summer Rydex traders have pulled back greatly in the past couple of days. They are now positioned quite conservatively compared where they have been the past couple of years, except for at the extremes of this Summer and last.
The chart below of traders using Rydex leveraged funds is close to where it was this Summer.