The Fed may have a very big problem on its hands.

After firing the biggest emergency "shock and awe" bazooka in Fed history, one which was meant to restore not just partial but full normalcy to asset and funding markets, Emini futures are not only not higher, but tumbling by the -5% limit down at the start of futures trading on Sunday evening...

... with Dow futures down over 1,000, and also limit down...

... the VIX surging 14%....

... perhaps because the Fed has not only tipped its hand that something is very wrong by failing to wait just an additional three days until the March 18 FOMC, but that it can do nothing more to fix the underlying problem, while gold is surging over 3% following today's dollar devastation (if only until risk parity funds resume their wholesale liquidation at some point this evening when we expect gold to tumble again)...

... as US Treasury futures soar (which will also likely be puked shortly once macro funds are hit again on their basis trades), as it now appears that the Fed's emergency rate cut to 0% coupled with a $700BN QE is seen as not enough by a market which is now openly freaking out that the Fed is out of ammo and has not done enough.

In short, with the ES plunging limit down, this has been an absolutely catastrophic response to the Fed's bazooka; expect negative interest rates across the curve momentarily... oh and Trump demanding Powell's resignation in the next 48 hours.

As FX strategist Viraj Patel puts it, "the Fed has thrown a kitchen sink of policy measures that should in theory weaken the US dollar. Problem is the global backdrop due to Covid-19 isn't conducive to putting money to work in other countries/FX. Fed making US risky assets relatively more attractive may support $USD"