Major technical damage to Oil. Watch for 29-28.25

Oil has been getting pummeled in 2016. Yesterday and today we saw some major technical damage with closes below the 31.11 fibonacci extension from last summer's local low. With today's +2% decline, we're firmly in no-man's land and due for a technical bounce. There's some monthly support b/w 29 and 28.25, and a new set of fib extensions down at 26.31 and 24.14. Today's action across assets hints at what might be a capitulation day for risk-on appetites. We'd ideally like to see a sell off in both $ES futures as well as oil down to the 29.00 level. From there we could see a massive bounce higher to retest coincident resistance zones at 33.

Still bearish in the medium-term, looking at 25 for the next leg lower.