Markets jumped the gun on Friday, now reality setting in. No risk of massive moves despite Iran news - encouraging for equity bulls. Market looking through Iran noise.

It will take something big to derail markets. Path of least resistance is for equities to go higher, but need selective approach.

Europe has concerns: 10% of Stoxx 600 reports this week, negative EPS and sales surprises. Europe could lag.

Bond market will be more cautious in pricing out Iran conflict impacts due to energy uncertainty keeping central bankers cautious.

ECB example: telling markets to wait till June for more information, showing reluctance to price out rate hikes.

Kevin Warsh comments won't have much cut-through; markets waiting to see Iran conflict play out.

Less pressure from US administration on Fed; Warsh is only one vote on FOMC, unclear how much impact he'll have on bond market.