David Fuller's view Italian Government 10-Yr Bonds (weekly & daily) reach a new closing high near 6% while Spanish 10-Yr Bonds (weekly & daily) are close behind. These currently represent the litmus test for confidence (more appropriately lack of confidence) in Europe's sovereign debt package. Downward dynamics are required to check upside scope and to reaffirm resistance near these highs.

Germany's DAX (weekly & daily), France's CAC (weekly & daily) and Sweden's OMX (weekly & daily) all eroded support, extended moves beneath their 200-day MAs and closed on their lows following convulsive trading today. This increases the top heavy appearance of these patterns and breaks in the progressions of lower rally highs remain necessary to question current scope for lower trading. Other European indices show similar deteriorations, or worse.

The USA's S&P 500 (weekly & daily) fell for the sixth consecutive day to test its MA and here also a break in the progression of lower rally highs is required to offset current scope for at least a retest of the important March and June lows near 1250. The Nasdaq 100 (weekly & daily) remains firmer but its last significant development was a downward dynamic last Wednesday to indicate an upside failure. Consequently, a new closing high remains necessary to offset current scope for sideways to lower trading.