The market looks like it is setting up to roll over. It has looked this way before and the bears didn't take it down. The Log-Periodic Power Law analysis from Didier Sornette however pointed to last week as the top and those prior times as just pull backs so possibly this is not a false alarm. Jerry plans to do some investigation over the weekend to analyze the closed end bond funds which are most sensitive to flagging liquidity problems. A preliminary look using a two year old group of CEF bond funds does point to liquidity issues building up. He will have to download a new set of CEF bond issues. Tom McClellan is saying the same thing about liquidity. If we are having liquidity problems it could be coming from margin calls in Japan.

Today looks like distribution to me on all indices. I usually wait until I see final volume figures so this call may be premature. If we have distribution on the NASDAQ it will produce an S13 distribution cluster sell rule. These come when 4 out of the last 8 trading days has distribution or stalling. Clusters of distribution are rare in the middle of a rally and are usually found in market topping structures. Yesterday was a stall day on the S&P500 producing an S13 on that index.
So there you have my rationale for a possible major top in process.