There is an endpoint indicator on all the cursors (Select, Draw, Rotate).
There is a table of all the cursors and their indicators here in the manual
When you are drawing something (say a line) the Draw cursor adds a little "tadpole" when it finds and has snapped on to an endpoint, like this
When the Draw cursor is in line horizontally with an endpoint, but some distance away, the tadpole goes horizontal like this
And when it lines up vertically it goes like this
And when it lines up both vertically and horizontally you get two little tadpoles, one vertical and one horizontal!
This happens regardless of highlighting, Highlighting really tells you which object you're actually snapping to, which is useful on a complex crowded drawing.
I think highlighting occurs when the end of the little cross (on the Draw cursor) touches the object – so the three "in line with endpoint" indicators won't cause highlighting because, by definition, they only happen when the cursor isn't touching the object. The endpoint, center and perpendicular indicators all cause highlighting.
At least I think that's how it all works!
Eric: it would be really nice if you could turn highlighting on and off "on the page" in the little bottom left hand menu (as well as in Preferences) because I think one will want to turn it on and off quite often on a complicated drawing.
Cheers -- George