Not to sound like a broken record, but it’s all about oil and the USDJPY this morning.

CL broke down overnight, but has found strong support at: (1) the bottom of the purple channel we suggested several days ago; and, (2) a combination of Fib levels including the white .786, the purple .382 and red .618.While, USDJPY has broken up through the pennant’s upper bound yet again — blunting the effects of oil’s slump.

SPX still hasn’t broken out of the red channel.

continued for members…

We’ll leave yesterday’s downside target as is.  But, if CL gets a strong bounce at 50, SPX’s downside could easily be limited to the red 1.272 at 2087.39.

UPDATE:  9:53AM

CL bounced at the channel line…

…so SPX is bouncing as well.