Intermarket analysis has many fans and many detractors. The fans believe in it because these relationships are logical and some of them have actually built trading systems using them. The detractors will point out that these relationships (breakdown) and most system don't work in the long run. I have been working with Intermarket analysis for well over a decade. I will try in this thread to share some of my knowledge with you on this topic. One issue that many of the detractors discuss is that these relationships don't work out of sample. One advantage I have is that I discuss many of them in public some over a decade ago. If they made money over the past ten years, guess what I think they worked. I hope I get a lot of questions on this topic. Intermarket analysis is one of my favor areas of technical analysis. In John Murphy's first book, published in 1991 on Intermarket analysis he used the crash of 1987 to lay out his Intermarket hypothesis. The problem is that until I built and published Intermarket based trading systems in 1994, no one had confirmed his work in a public forum. Many institutional traders used the concepts, but rules to mechanical trading systems, which used Intermarket analysis, were not generally publicly available. I developed a very simple concept for Intermarket based systems. For positively correlated markets If Intermarket is in up trend and traded market in down trend then buy If Intermarket is in down trend and traded market is in up trend then sell You can use various concepts to defined an up and down trend. In most of my work I used price relative to a moving average. For negatively correlated market we have as follows: If Intermarket is in up trend and traded market in up trend then sell If Intermarket is in down trend and traded market is in down trend then buy This is my introduction entry in this thread. I will include many examples as well as a historical view of the Intermarket research I have published over the years during the coming days and weeks.