Dow closes up 200, S&P gains 1% as oil rises

(CNBC) U.S. stocks closed higher Thursday, extending the previous day's massive intraday reversal as oil prices rose.

The major averages rallied into the close, with the S&P 500 rising 1 percent to top the 1,950 level many analysts consider a resistance level.

The Dow Jones industrial average closed up more than 200 points, with United Technologies and Goldman Sachs contributing the most to gains.

"I still think the shorts haven't been neutralized. I think there's a bit of a short squeeze going on," said Daniel Deming, managing director at KKM Financial.

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