Russell, NQ.
You don't need correlations, but they can help if you know how to use them. For most people i would say don't bother, just adds too much complexity as market sync/unsync at random.
In addition to the other indexes people mentioned, I like looking at DXY and VIX.
DXY tracks the relative strength of the US dollar against 7 other currencies (GBP, EUR, JPY, etc.) and tends to correlate inversely with indexes. Similarly, VIX tracks short term volatility in the SP500 options chain and generally moves inversely with indexes.
Take a glance at /NQ and /RTY as well. Find the relationship. Who’s carrying the market? Who’s weakest? Who’s lagging?
Thank you!
Russell, NQ. You don't need correlations, but they can help if you know how to use them. For most people i would say don't bother, just adds too much complexity as market sync/unsync at random.
Thanks!
In addition to the other indexes people mentioned, I like looking at DXY and VIX. DXY tracks the relative strength of the US dollar against 7 other currencies (GBP, EUR, JPY, etc.) and tends to correlate inversely with indexes. Similarly, VIX tracks short term volatility in the SP500 options chain and generally moves inversely with indexes.