Posted August 3, 2011 8:00 p.m. ET (10:00 a.m. AET) on Trading Diary.
The FTSE 100 followed through below 5600 after breaking primary support at 5650, confirming a primary down-trend.
The DAX similarly broke primary support at 7000 on the weekly chart and is now testing its earlier support level at 6500 — breach of that would be the final nail in the coffin. Bearish divergence on 13-week Twiggs Money Flow has been warning of selling pressure for several months.