Two traders break down a losing long trade on ES futures. NASDAQ held above its pre-market high while ES rejected the same level, a divergence that signaled the trade was wrong from the start.
I took a losing trade. There was a very clear reason as to why it failed. So we have the NASDAQ.
And the S&P 500 futures.
We had a pre market high, we moved lower and then later in the day we broke above that high and started to look like.
We were holding above it.
At that same exact time, we had.
An S and P.
That had that high. Move back lower, move back higher and.
Rejected an equal high here like that.
This can be very dangerous and very.
Difficult to trade, right?
Because the question mark here is does the Nasdaq hold and bring the S and P with it, or does the Nasdaq fail back under because of the.
S and P failing?
So typically when you see in a situation like this where the Nasdaq's above.
A high and the S P is below it, some would.
Call that a bearish.
Smt, right?
So this is a really good sign of okay.
ES is rejecting.
That high, NASDAQ's above it. We do not have.
A reason to long the market yet here because of this discrepancy.
And I did make the mistake, full transparency of longing.
The QQQ because of this retest.
