NQ traded sideways on Friday, remaining above key 4800 support, helping to keep selling under control. Unless they are able to push NQ back up above 4840 it would remain vulnerable to selling pressure.
Key support for Monday will be 4800 price level.
-- Remaining above 4800 should keep selling under control, but it would have to break back above 4840 to get NQ on the bullish side again.
-- Breaking below 4800 could trigger another selling avalanche that can get out of control. Next support is 4750, then 4700.
As the European financial system is on the verge of collapse, central banks are standing ready to crank up the printing presses. These central banks are totally aware that an extended deflationary period would be the end of many major European banks and also the global financial system.
We are at the point now when a deflationary implosion could happen any time, caused by the collapse of Deutsche Bank or a major Italian or Spanish bank. European governments are not going to let this happen, and therefore a major European and global money printing package is not far away.
