DAX breaking down from Diamond formation?

Looks like the Diamond Topping pattern is coming to fruition..with today's action (SO FAR!)
http://iberianviews.blogspot.com/2010/10/dax-diamond-formation.html

 6124 looks like temporary support, expect a possible retest of the breakdown level around 6200, if we get above 6230 ..back in the range and possible FAILURE of the DIAMOND.

If 6124 breaks , 6080/6060 level next support

LONGER TERM

 A break of 6060 brings 5850 into play...

DAX diamond formation?

"The diamond formation reversal pattern is found relatively infrequently. When it does form, however, it usually does so at market tops rather than at bottoms."

DAX 2 hour charts Diamond formation?

Extract from Edwards and Magee  "  Technical Analysis of Stock Trends"

 

"Diamond is not a common pattern. Since it's development requires fairly active markets, it RARELY occurs at bottom reversals.  It's "natural habitat" is Major Tops and high volume tops which precede extensive Intermediate reactions.  generally the new trend carries WELL beyond the minimum retracement. "

 

LET's see which way it breaks!!

Minimum targets....

on downside 4640

IF it breaks higher..5101 roughly