This action had a subtle but negative effect on the stock market, particularly on old economy stocks that are traditionally more affected by interest rate direction. New economy technology stocks proved relatively immune to rising rates in 1999—but not in 2000.

One of the basic premises of the technical approach is that the price action in each market (and each stock) is also a leading indicator of its own fundamentals. In that sense, chart analysis is just a shortcut form of economic and fundamental analysis. This is also why the intermarket analyst uses charts.

This means that the continuation of the current housing boom may be heavily dependent on interest rates staying low.

took a lot of people a long time to recognize that a major change had taken place in the bond-stock relationship, and even longer to understand why.

Of the four financial markets used in intermarket work, the dollar is probably the most difficult to fit into a consistent intermarket model.

stocks usually change direction ahead of their related commodity.

From 1971 to 1980, the Commodity Research Bureau (CRB) Index—which is a basket of commodity prices—appreciated in value by 250 percent. Bond yields rose by 150 percent during the same period and, as a result, bond prices declined.

And also to improve the timeliness of their signals. This is done by a closer monitoring of commodity prices more directly tied to the economy.

Warnings came from sector rotations out of late expansion stocks into early contraction stocks.