S&P 500 has stabilized just above 3900 with the help of the calm Vix index. After the CPI data, downside shock, Fibonacci %61.8 support is still holding. But the downtrend channel and FED’s rate expectations cause downside pressure to continue. If the support fails, S&P 500 has the potential to fall to the previous dip or the lower line of the channel. Positive news flow is somewhat weaker than the negative and the technical outlook is still grim. 

On the other hand, the relatively calm VIX is giving hope to market bulls. Long-term dip buyers might take advantage of cheaper stocks. 28 and 32 are levels to watch for VIX. Breaking these levels might lead to sudden jumps. As for the S&P, 3900 is the main support for the short term.