The UK auction cleared @ 8.55 per EUA when the spot was 8.52 at that time - and this made the day.
One can think that those buyers who needed to buy today got their units on the auction so there were very few reasons left for being bullish. 30 mins before the auction finised, the EUA Dec12 marked the daily high of 8.84 euro and that was it for today.
Closing the gap mentioned in the morning, trading towards Fibonacci retracement at 8.84 euro, sideways moves on light volume after the UK announces the clearing price and ending the day very bearish testing (yet again !) the recent low and support of 8.45 euro and breaking the trendline at the time of writing - this is the day in a nutshell.
Shall we look at the market as per the chart below?
It seems we are moving in a downward channel. It was worth to be long until 8.85 but without a new "high" higher than 8.92 euro, the selling pressure prevailed and the market brokeout of the countertrend towards the lower band of the main downward trend (selling signal in the red circle - probably some stops were triggered here).