Confirms the trade playing out is small caps over tech, which is a problem because nine names make up ~40% of the market. When those nine trade sideways, it's a challenge for the market to break higher.

Says Asian markets are likely to see some follow-through selling, but notes the late tape in New York showed the equal-weight S&P holding well, which could carry over to Asia.

States the speculative excess has come out of silver, volatility needs to come down, but the backdrop remains constructive for metals from a demand story.

Attributes dollar direction uncertainty to the Kevin Warsh nomination; the market doesn't know what to expect from him yet.

Says they are watching very closely, noting Treasury Secretary Bestin is a hawk on Asian FX, which puts a ceiling on Asian currency weakness and has reverberations across the region.