At the end of this past June, the IMF commented that Deutsche Bank appeared to be the most important element to the inherent risks in the global banking system. Last week, Deutsche Bank was having problems which they seemed to be underplaying. If Deutsche Bank isn't having any difficulties, why are they preparing to eliminate 1,000 jobs this week?

Bloomberg news commented that Deutsche Bank was trying to reach a settlement before next month's presidential election with U.S. authorities demanding a fine of up to $14 billion for mis-selling mortgage-backed securities.

With that background, let's keep an eye on the U.S. Banking Index ($BKX) chart that we posted below.

The Banking Index closed at 70.61 with the 30 day C-RSI at a Caution level of +2.32. The Accelerator was in positive territory while technically down trending and showing a fast indicator up tick. The Timing Indicator was in low negative territory with a lower tick and showing down trending. The Banking Index was in a Very High Risk condition.