Futures have been all over the map this weekend as algos try to come to grips with the fallout from the Silicon Valley Bank failure.

continued for members…

At the moment, it appears that depositors are safe. But, stock prices are still reflecting a good deal of fear regarding the risk of contagion. What else is out there that might break?

The channel breakouts which occurred in January have failed and major indices are back below their SMA200s.

As we wrote last week, the SMA200s are simply the key level of support the bulls needed to hold in order to have potential upside. VIX has similarly reached a point where it can stretch no further without doing major damage to the broad indices.Currencies are doing a poor job at holding the bullish line… …with NKD back below its SMA200. …and DXY’s breakdown… …fueling strong moves in GC, SI and BTC. And, CL and RB are headed south, perhaps to match the new narrative on inflation which is almost certain to be unveiled tomorrow.   Bottom line, whatever the chances were of a 50 bps hike, they are no more. Even a 25 bps hike is questionable. At the end of the day, this entire episode should be stimulative – with the usual maneuvers employed to calm the markets.Stay tuned…