Wednesday morning I wrote the following:

"Another all-time high in the Dow Industrials this morning with non-confirmation from the S&P and Russell. Tomorrow we will get the Twitter IPO hooplah which might very well coincide with another all-time high for the S&P 500, a confluence which will only serve to stir the animal spirits more than they already are. 

The Investor's Intelligence survey confirms that the spread between bullish investors and bearish investors is the widest it's been since April 2011 (a particularly frothy month for markets which preceded a major top in stocks).

Would it be too perfect for the Twitter IPO to mark the top of the rally? Probably. However, savvy investors should probably cast at least one skeptical eye towards a $20 billion valuation for a money losing business that for all intents & purposes has been sliding backwards in terms of its "coolness" factor for many months."

This morning we got another marginal all-time high in the S&P E-mini futures following the surprise ECB rate cut announcement:

ES_Hourly

The 1774.50 high print was hit shortly after the 7:45am ECB announcement, however, sellers showed up in aggressive fashion as soon as the US market opened at 9:30am EST and they did not let up all the way through to the closing bell.

The Twitter IPO turned out to be a major distraction which captured headlines.....

TWTR

........and took up most of the day's airtime on financial TV. However, the Twitter IPO has likely marked a major top for US equities.

The damage beneath the surface of the major equity indices is extensive and became significantly more pronounced today. There have rarely been so many mature topping patterns occurring simultaneously among the market leading stocks & sectors:

TSLA Daily

TSLA_Daily_11.7.2013

FB Daily

FB_Daily_11.7.2013

PCLN Daily

PCLN_Daily_11.7.2013

LNKD 1 Year

LNKD_1-year

HLF Daily

HLF_Daily_11.7.2013

While HLF doesn't exactly have a high correlation with the overall equity market, it is one of the story stocks of 2013 and does have a high degree of retail investor interest - H&S patterns don't come much cleaner than this one. 

Although the die may have been cast today, the non-farm payrolls report tomorrow morning could trigger further downside which could break the hugely important uptrend drawn from the November 2012 low in the Russell 2000:

IWM_Daily_11.7.2013

Bulls will want to see the 105-106 area aggressively defended in IWM (Russell 2000 ETF). We cannot overstate the importance of either tomorrow's close or the 12-month uptrend line in the Russell 2000.