Why do you review the futures and forex markets before doing analysis of the options and stock markets?
The world is too connected to ignore movements in other markets. All markets are interconnected so we have to evaluate the world demand for our dollar before we can size up our economy. For a number of years the market and the dollar had a correlation coefficient of -1, moving exactly opposite of the market. Knowing this allows us to look for support and resistance levels in both markets to verify trading opportunities. We evaluate the futures markets because it gives an early indication as to possible gaps in the market as well as opportunities.
