The stock market sold off hard on Thursday ahead of the official inclusion of the Chinese Yuan into the SDR basket, and the official launching of the SDR world money as a world reserve currency to slowly replaces the USD. Central banks buy program managed to push the market back up to the middle of the day range for NQ.
The Fed Chairperson Janet Yellen has officially requested permission from Congress to openly and directly buy the stock market, instead of using proxy.
The battle between deflation and central banks is certain to continue until central banks eventually capitulates or until fiat paper money becomes worthless. Deflation is now starting to win. Deutsche Banks shares is fast approaching zero, unless Germany and ECB can print enough Euros to bail out the bank out. A collapse of Deutsche bank who has $46 trillion derivative value on its books will crash the global stock market and financial market.
On Friday key inflection price level for NQ will be 4845 again.
-- Selling will come back unless NQ can push back above 4845, and then stay above.
-- Trading back below 4845 is likely to attract renewed selling activities, with the next critical support at 4800
Here is a view of Deutsche Bank and Commerzbank share as seen from 1989 to now. While Commerzbank rallied back after the financial crisis “ended,” both Deutsche Bank and Commerzbank have not recovered.
