The classic relationship between markets sectors seems to be as irrelevant as technical analysis in general these days.
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If the key market is the US dollar, what does it say when the Index fell to a new 3-year low last month?
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily. Generally speaking, there has been a flow of long-term investment money out of equities and into short-term Treasuries based on all the certain uncertainty created.
I recently wrote a piece asking the question if the WTI crude oil market makes sense, with the conclusion a resounding “Maybe, maybe not”. Helpful, right? But that’s the world we live in today. With that thought in mind, I want to expand the discussion to markets in general, most notably the sectors discussed in John J. Murphy’s 1991 book, “Intermarket Technical Analysis”. I like Mr. Murphy’s book as it takes apart what the various market sectors were doing ahead of Black Monday 1987. You might recall this is the event that brought me into this industry and set the stage for my Market Rule #5: It’s the what, not the why.
