Yesterday at this time it certainly looked as though oil was kaput -- on the way to the bowels of the earth. Not any more. Today's nearly $2 upmove in the US Oil Fund (USO) and crude oil futures comes right off of the sharply rising 20-day moving average, and leads me to revert back to my opinion, which outlined the "final" (higher) targets off of the multi-month base pattern (shown below) of 78 and 84. Today's launch has the look and feel of the start of a new upleg that is heading for 78 next. If that proves to be the case, will equity prices correlate to the renewed strength in oil directly or inversely in the upcoming days and weeks?



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.