Intermarket Technical Analysis is the study of the relationships between the four major financial markets: Stocks, Bonds, Commodities and Currencies. There are several key relationships that bind these four markets together. These relationships are:

• The INVERSE relationship between commodities and bonds
• The INVERSE relationship between bonds and stocks
• The POSITIVE relationship between stocks and commodities
• The INVERSE relationship between the US Dollar and commodities
  

POSITIVE: When one goes up, the other goes up also.
INVERSE: When one goes up, the other goes down.

When these relationships occur, the markets are said to be acting "normally" and there is a good probability the current trends will continue. When one or more of these relationships break down, the markets should be watched carefully for signs of general trend reversals.