Market trend article from John Murphy

A must read. Very well written. Lots of stuffs about the intermarket analysis.

http://stockcharts.com/members/analysis/20110910-1.html

Some quotes:

The "new normal" relationships among the four market are outlined below:

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

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

a rising dollar was bad for both markets. A rising dollar usually hurts the relative performance of foreign shares. A rising dollar usually translates into a weak Euro. A positive correlation often exists between foreign shares and their local currency.