Wall of Worry

It's rare that the path for any market looks entirely clear, and that's as it should be, as if more upside were guaranteed it would already be priced in and historic. It is a concern that last week's decline looked like a single wave down, and is entirely possible that there is more downside coming as many expect. Fortunately there is a decent looking line in the sand drawn on ES in the 1320-1 area, as an IHS has formed there with a target at 1347. If 1321 is broken with conviction today then the path will look clear to new highs, with Mondays being historically strongly bullish and the first of the month (tomorrow) also historically strongly bullish:

The picture is slightly less clear on NQ, with a resistance zone in the 2335 to 2365 area, with the key levels in the 2335, 2350 and 2365 area. A break with confidence of Friday's 2350 high will look bullish, and a break with confidence of 2368 will open up a retest of the 2400 area:

Copper broke up on Friday and the next obvious target is strong resistance and the potential IHS neckline in the 451 area. There's significant negative divergence on the 60min RSI however and I'm wondering about a retest of broken resistance:

Silver broke up from resistance at the close on Friday and may be forming an IHS with the target at 35.7. There's some negative divergence on RSI suggesting there might be another test of broken resistance and I'll be watching the current short term support trendline:

Oil has a lot of geo-political risk at the moment and increasing unrest in the middle east may well push it up further. It has made the broadening formation target from last week and negative divergence on the chart looks weak short term:

A lot of people, including myself, are looking with great interest at the longer term short setup on Yen, and I've been suggesting for over a week that Yen might have another last push up to deliver a good entry level. USDJPY (inverted Yen) has now reached my highest probability target and reversed there so this looks like an attractive entry for those scaling in to a longer term short Yen position. If I have room I'll post the longer term chart tomorrow to show the full setup

I'm leaning strongly bullish on a break with confidence of the IHS neckline on ES today. Until that happens I'm seeing this as the highest probability reversal area if we are to see another wave down on equities so longs should be cautious until we see that break up.