Since NYMEX oil futures hit their Nov 27 low at $91.27, which coincided closely with the Nov 29 high at 1812.50 in the Emini S&P 500, the relationship between oil and the S&P 500 has inverted to "direct" from indirect. Instead of the S&P weakening, it has moved sideways to higher as oil has rocketed by 8% in just nine trading days.
With that in mind, the price structure of the up-leg in oil looks very constructive, which warns us that it is going higher, even allowing for a pullback into the $97.00-$95.50 area in the upcoming hours.
What that means for equities, well, who knows at this point. The only thing that is evident is that the inverse relationship between oil and the S&P 500 from Oct 9 to Nov 27 has been weakened considerably.