Although the reasons for Thursday's decline in crude oil -- intraday hit a 6-year low -- are a bit of a mystery (stronger USD?), the decline is pressing oil toward my next optimal, downside target zone near the lower-boundary lines of its two post-Nov. 3 down channels: $35-$33.
At this juncture, the fact that the equity indices are not (yet?) falling in sympathy with oil's decline suggests, perhaps, that an important positive divergence is emerging, which is indicative of an oil market that is quickly nearing downside exhaustion.
That said, oil must climb and sustain above $37.60-$38 to trigger initial signals that the most recent downleg from $42 is complete.