The market is carving out a nice looking topping formation. I think the stage is set for a quick decline to 780, followed by much lower prices (bear market low). You can see my last post about the overall market here.
Notice in the above daily chart of /ES that price has finished Wave-iv of a long-term ending diagonal. Furthermore, Wave-c of Wave-iv was an ending diagonal, which implies an abrupt drop. Finally, notice that there have been 5 distribution days in the past month. This signal has worked perfectly over the past year for indicating a topping formation, and implies lower lows to come. (Check out these links for past examples of 5 distribution days in a month: Distribution is back in the Dow, The Q's are Making Me Flip-flop, More Distribution taking Place in the Dow 30, Distribution Days in the Dow.)
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