The potential declining channels on equities that I posted on Friday are looking very good. Here's the one on the Dow, with the next target in the 10,860 area. The action overnight looks like a bear flag, but I'm not sure I trust that on a Monday:
The declining channel on ES looks less perfect than the ones on the Dow and Nasdaq futures, but the next channel target is the lower trendline in the 1170 area:
I've had another look at gold and redrawn my rising channel after some thought. If I'm right, then gold should meet channel resistance in the 1190 area:
Overall the charts suggest more downside on equities today, but 26 of the last 31 Mondays have closed up, and we may just trade sideways today.
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