Intermarket Indicators
7-Market Regime Detection System
Last updated: 4/3/2026, 8:48:18 PM
Current Market Regime
Transitional regime. Dollar: Strong Dollar
Regime Classification
- Bull Quiet: Risk-on environment with low volatility and rising equities
- Bull Volatile: Rising equities but elevated volatility signals uncertainty
- Bear Quiet: Declining equities with rising bonds (orderly decline)
- Bear Volatile: Risk-off with high VIX and flight to safety
- Transitional: Mixed signals, regime change in progress
Individual Indicators
Risk Sentiment
Neutral risk environment
How it works: Combines equity momentum (SPY) with volatility (VIX) to gauge market risk appetite. High VIX + falling SPY = Risk-off. Low VIX + rising SPY = Risk-on.
Dollar Strength
Dollar strengthening: Headwind for commodities and international assets
How it works: Tracks UUP (US Dollar Index ETF). Strong dollar typically negative for commodities (priced in USD) and international stocks.
Real Rates
Rates stable: Neutral environment
How it works: TLT (20+ Year Treasury) price inversely related to yields. Rising TLT = Falling rates = Good for growth stocks. Falling TLT = Rising rates = Good for value/financials.
Commodity Strength
Mixed commodity signals: Sector-specific factors at play
How it works: Different commodities signal different regimes. Gold leading = defensive/inflation concerns. Energy/silver leading = risk-on/economic growth.
Why Intermarket Analysis?
Uncorrelated Signals
Using 7 different asset classes provides confirmation. If multiple uncorrelated signals align, it's likely a real regime change, not noise.
Less Crowded Trades
Single-asset technical indicators (RSI, MACD) are widely used and saturated. Intermarket relationships are less common among retail traders.
Leading Indicators
Intermarket relationships often lead equity moves. Dollar strength can predict commodity weakness. Bond strength can predict equity risk-off.
Regime Context
Understanding which regime you're in helps all strategies. Risk-on favors growth/cyclicals. Risk-off favors defensives/quality.
The 7 Markets
- SPY - S&P 500 (US equity market)
- ^VIX - Volatility Index (fear gauge)
- TLT - 20+ Year Treasury Bonds (interest rates)
- UUP - US Dollar Index (currency strength)
- GLD - Gold (safe haven / inflation hedge)
- SLV - Silver (industrial metal / inflation)
- XLE - Energy Sector (economic growth / oil)