Although the reasons for this morning's decline in Oil-- to a new multi-year low-- are a bit of a mystery (stronger DXY?), the decline is pressing Oil towards my next optimal, downside target zone near the lower-boundary lines of its two post-Nov 3 down-channels: $35.00-$33.00.
At this juncture, the fact that the equity indices are not (yet?) falling in sympathy with the decline in oil suggests perhaps that an important positive divergence is emerging that also is indicative of an oil market that is quickly approaching downside exhaustion.
That said, however, Oil must climb and sustain above $37.60-$38.00 to trigger initial signals that the most recent downleg from $42.00 is complete.