Intermarket Analysis: Profiting from Global Market Relationships


  • Pages: 286
  • Format: PDF
  • Published Date: 2004


John Murphy’s point in writing Intermarket Analysis: Profiting from Global Market Relationships was to show how closely related all the financial markets really are, both domestically and internationally. The book’s main thesis was that technical analysts need to broaden their chart focus to take these intermarket correlations into consideration.


Analysis of the stock market, for example, without consideration of existing trends in the dollar, bond, and commodity markets was simply incomplete. The book suggested that financial markets can be used as leading indicators of other markets and, at times, confirming indicators of related markets.

Because the message of my earlier text challenged the single market focus of the technical community, some questioned whether this newer approach had any place in the technical field. Many questioned whether intermarket relationships existed at all—and whether they could be used in the forecasting process.

The idea that global markets are linked to each other was also viewed with some skepticism. How things have changed in just one decade. Intermarket analysis is now considered a branch of technical analysis and is becoming increasingly popular.

The Journal of Technical Analysis (Summer– Autumn 2002) asked the membership of the Market Technicians Association to rate the relative importance of technical disciplines for an academic course on technical analysis. Of the fourteen disciplines included in the poll, intermarket analysis ranked fifth. Intermarket work has come a long way in ten years.


  • A Review of the 1980s
  • 1990 and the First Persian Gulf War
  • The Stealth Bear Market of 1994
  • The 1997 Asian Currency Crisis and Deflation
  • 1999 Intermarket Trends Leading to Market Top
  • Review of Intermarket Principles
  • The NASDAQ Bubble Bursts in 2000
  • Intermarket Picture in Spring 2003
  • Falling Dollar During 2002 Boosts Commodities
  • Shifting from Paper to Hard Assets
  • Futures Markets and Asset Allocation
  • Intermarket Analysis and the Business Cycle
  • The Impact of the Business Cycle on Market Sectors
  • Diversifying with Real Estate
  • Thinking Globally