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When Does a Breakdown in Market Correlations Mean Something?

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When Does a Breakdown in Market Correlations Mean Something?

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What if something that most traders and investors accept as fact, actually was not true?

The vast majority of people believe the four benchmark indexes are positively correlated to a value of 1. However, you may be surprised to know that over the last twenty years, for example, the Russell 2000 and Nasdaq 100, have not been correlated as such? Watch NinjaTrader’s Jim Cagnina & special guest Bob Iaccino explore correlation analysis across the major market indexes in our recent livestream.

Topics discussed include:

  • Discussing both positive and negative correlation as it relates to futures market analysis.
  • Demonstrating correlation analysis using specific historical and current charting examples.
  • Defining “bear markets” from a technical analyst’s perspective.
  • Identifying historical bear markets rallies with reference to current market activity.
  • How an understanding of correlation analysis could help in identifying potential trade opportunities using futures.

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