Here is the updated chart of Spain's $IBEX that I showed yesterday during trading hours, left sitting right on an important trendline of support after closing down 1.46%, there is no room left on the downside come next week, it is Do or Die time. On the Elliott wave front, I see no possible way to label the rally from the July '10 lows as impulsive, and if this support gives way, so does the bullish channel, leaving the only channel that is being respected, a bearish channel.
Italy's $MIB (Milan Index) is in worse shape then Spain's, having already broke down and out of the bullish channel and currently hitting solid resistance from three points, a long term bearish upper channel line(green), back-testing the lower bullish channel line(green) and the brown bearish minor median channel line(brown). There are some interesting lines on this chart, and the majority have been well respected, upping the resistance power of the crossing point of all three of these lines.
The Sell-off is also showing up in the Euro, with a fresh lower low being printed yesterday as the price broke below support of the previous low of $129.72 while keeping the downtrend channel intact, next support is now down at $125.91, reallying upping the odds, that the Spanish equities market will breakdown below that important level of support from the upper chart.