Intermarket analysis

Intermarket analysis is a field within technical analysis that combines analysis of major categories of securities—namely, equities, bonds, currencies, and commodities—to identify market trends and possible inflections in a trend.

Intermarket analysis is based on the principle that all markets are interrelated and influence each other.

Intermarket analysis also looks at industrysubsectors and the relationships among the major stock markets of countries with the largest economies.

To identify these intermarket relationships, a commonly used tool is relative strength analysis,

which charts the price of one security divided by the price of another.