Using relationships between markets (bonds, currencies, commodities) alongside wave analysis to identify turning points and confirm counts.
Description
Intermarket analysis examines the relationships between different asset classes — equities, bonds, commodities, and currencies — to identify macro trends and turning points. Elliott Wave patterns can be applied across all markets, and turning points in one market often correspond to turning points in related markets.
Key Points
- Bonds and stocks: typically inversely related at major turning points
- Dollar and commodities: generally inversely related (stronger dollar → weaker commodities)
- Gold: often moves counter to the stock market at major turning points
- Use intermarket confirmation: if wave 5 in stocks is ending, look for a corresponding turning point in bonds
- Elliott patterns apply to all freely traded markets: equities, forex, commodities, crypto
