The battles between central banks and deflation continues. On Friday, buy programs managed to push the stock market up, an up day in the market, but the rally momentum on the daily chart is getting really slow, and a sharp selloff may not be too far away.
The Fed is going to continue to support the market into the November election in order to get banker-controlled Hillary elected for President simply because Trump is not really a banker-friendly candidate. Whether or not the Fed can really hold up the stock market against intensifying deflationary forces, only time will tell.
For Monday, short term key price level to watch is 4855, acting as support as of Friday's close.
-- Staying above 4855 should keep major selling activities at bay.
-- Trading below 4855 is likely to attract selling activities, next support is at 4800.
European banking stocks are dying under the weight of the negative interest rates, stock prices hitting lows
