NDX and INDU very telling E-waves The NDX is in the late stages of an ending diagonal. A sudden drop could happen any time. http://charts.insidestocks.com/chart.asp?sym=$iuxx&data=Z60&date=051406&den=HIGH&divd=Y&evnt=ADV&grid=Y&jav=ADV&size=D&sky=Y&sly=N&vol=Y&late=Y&ch1=011&arga=&argb=&argc=&ov1=&argd=&arge=&argf=&ch2=&argg=&argh=&argi=&ov2=&argj=&argk=&argl=&code=BSTKIC&org=stk The INDU looks like it has topped and truncated. A waterfall pattern of lower lows and lower bounce highs (multiple waves 1-2). http://charts.insidestocks.com/chart.asp?sym=$INDU&data=Z60&date=051406&den=HIGH&divd=Y&evnt=ADV&grid=Y&jav=ADV&size=D&sky=Y&sly=N&vol=Y&late=Y&ch1=011&arga=&argb=&argc=&ov1=&argd=&arge=&argf=&ch2=&argg=&argh=&argi=&ov2=&argj=&argk=&argl=&code=BSTKIC&org=stk The SPX is caught somewhere between the INDU and NDX.