Crude's surge to new 2016 highs this week is paving the way for stocks to keep rising, according to one bullish technician.
"We've found that the 'sweet spot' [for stocks] is when oil is low and stabilized," Oppenheimer's Ari Wald said Wednesday on CNBC's "Trading Nation." "I think this trading range environment that we expect for oil is going to be very bullish for stocks as a whole."
After falling more than 70 percent from its highs in 2013, crude oil is bottoming, according to Wald. The next level of support he sees for crude is $37, with resistance at $48. That $11 range, he believes, "marks the resumption of the S&P's secular bull market."
Mild commodity bear markets have proven to be bullish for stocks, Wald argues, using the below chart to illustrate his point.