As a student of inter market relationships I get excited when markets validate these relationships in such a strong way. Markets have been confusing for much of 2014 as these relationships have been skewed but as these historical inter relationships once again "kick in" it allows us to draw more definite and convicted opinions regarding market direction.
We'll start by looking at stocks as represented on the daily chart of the S&P 500 SPDRs ETF (SPY):
Warning! you can lose some or all of your principal (money) investing in stocks, bonds, ETFs, mutual funds, currencies, indexes, index or stock options, LEAPS and stock or commodity futures!