When Warren Buffett – normally one of the market’s biggest cheerleaders – says he can’t find any compelling buys, traders take notice.

“We have not done anything because we don’t see anything that attractive to do,

They might also be wondering just how ugly March Durable Goods (due at 10AM) will be and what to make of escalating tensions between the US and China.

S&P futures tagged our next downside target overnight and are struggling to retake the 20-DMA.

continued for members…

The bigger picture reflects the fact that SPX and ES are still out of sync.

Note that SPX’s channels line up slightly differently…

…but the primary difference is the 2.24 at 2703 vs ES’ 2728.

Note that the Dow is still in trouble, having dropped back through its 2.24 and SMA10.

RUT has fallen back below its yellow channel .786 line and will likely drop through its SMA10.

Only COMP continues to look relatively healthy, with an important test of its SMA200 at 8428 coming up.

USDJPY is hinting at another “breakout” but we’ve seen each of these fail. No reason to think this one won’t also break down.EURUSD has likely run its course, and should head south for the foreseeable future. This leaves DXY in limbo, with the backtest of the red TL suggesting additional near-term downside.Oil and gas were off significantly earlier, but are clawing their way back toward flat.  An actual breakout would reverse stocks’ drop, but the recycling of the overnight lows at least helps stabilize things. The most troubling development for bulls is the 2Y, which has reached 0.161 – the lowest level on my charts which go back 40 years. Dropping through horizontal support at 17 bps (from 2011) is bearish.

Previous breakdowns – whether trend lines or horizontal support –  have always been bearish.We’ll want to watch how the 2Y responds to the Factory Orders and Durable Goods. At these levels, the 2s10s is back to 45 bps.

UPDATE:  10:05 AM

March Factory Orders fell 10.3% MoM verus -9.1% consensus and Durable Goods fell 14.7%, the second worst in history. April will obviously be worse.

The 2Y bounced up to .172, fell back to .161, and is currently sitting at .172.ES has held the little red TL and SPX got its backtest as expected…

…with VIX taking a timely dive…

…and CL/RB back to green. UPDATE:  2:47 PM

VIX is nearing its SMA10, where it will probably backtest the little white channel and potentially send ES/SPX green on the day. At the very least, ES has a chance to break out of this little triangle and potentially backtest its own SMA10.USDJPY is breaking down……which might put some pressure on stocks except that VIX is breaking down and CL/RB are breaking out. Back to long here with tight stops.

GLTA.