The market seemed like it wanted to try and bounce earlier but the woes out of Europe have proven too much. Italy's problems are quickly escalating as there are rumors that Italy is cancelling all its bond auctions for August and September.
If it was not clear before that intervention is necessary, it is clear today. The problem is that getting anything done in the EU requires dozens of approvals and all the politicians are on holiday for August. Good luck getting them back from holiday in order to bailout Italy.