|By Matein Khalid| While the S&P500 fell only 1.2% last week, things will get uglier in April and May. Fed chair Yellen is playing with fire in talking down US interest rates and inflation risk. The Volatility Index (VIX), Wall Street’s barometer of greed and fear, does not capture the rising global financial and political risks at only 15. Market breadth, sector divergence, smart money flows, sentiment, leadership, bank shares and negative distribution stink. Earnings will contract at least 8% as margins sag. The yen is at 108. Valuations are expensive at 17.4 times earnings that will contract, not grow in 1Q 2016. As M.C. Hammer once put it, can’t touch this!