Futures are off sharply as we head into the open, weighed down by a rapid escalation in omicron cases and the apparent failure of President Biden’s Build Back Better bill after Senator Manchin announced his opposition on Sunday.

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The equity picture:

COMP is on track to backtest its SMA200… …and NKD is even dipping a small amount, maybe enough to reach our downside target.VIX is up nearly 20%, but is nowhere near its recent highs and has backtested the purple TL from Nov 16. Significant breakdown in oil – back below its SMA200 and channel midline at this time. RB has joined it in breaking down. USDJPY has moved very little, holding the dashed red line and thus preserving its upside potential. EURUSD has bumped up only slightly……leaving DXY without direction. As expected, GC’s “breakout” on Friday was a headfake.  And, SI is slipping back below its SMA10 after a small bounce off its .618 target.

The 10Y is off slightly, sitting at 1.385% and dipping towards the red channel bottom yet again.I have to visit my eye doctor this morning – too much time staring at charts? – and will be out for a few hours. Hope to be back by 2pm or so.