Standard Polyline Overlaps Itself

[sutcac]

Can someone tell me how this giant circle helps me in any way to find where I have this polyline overlap? I can't find it anywhere in either of the two closed, hatched polylines that show in this plan. If there is going to be this circle, shouldn't it zero in and indicate more clearly where the problem is?

I tried Kevin's intersection tip on this, but it doesn't seem to work.