Wilshire used for form. The wave i of (c) of [z] has been moved and looks better as it was not very proportional before. This count looks better so we'll go with it for now.
My take on this deviation (divergence) is bearish overall.
The small caps topped in April 2011, a full 16 months ago.
NYAD count, Note that the NYSE depicted as the indicator on the lower part of the chart, has not confirmed the new cumulative totals since April 2011.
CONCLUSION:The "main" indexes of the DJIA, S&P500 and even the NASDAQ Composite may be tantalizing for bulls because of their current price heights, but the underlying indexes are lagging and diverging noticeably. The global situation is lagging badly as indicated by the GDOW.
My take is that the U.S. markets will catch up to the downside. The rising wedges suggest that the downside catchup could be quite severe, quite fast and trapping as many bulls as possible. I could be wrong on the rising wedges but one must respect their potential to indicate exhaustion in the markets.
Technically, even a cursory look at a weekly chart shows a double negative divergence developing in such simple indicators as the RSI.
Sentiment-wise, things are ripe enough for a major price decline.
I'm with Biderman on his thinking that when the collapse happens, it may very well happen overnight.