When Nasdaq futures rally early then retrace 50% of their range, S&P 500 futures often follow, signaling weakness. Watch volume to confirm the signal, enter near the 50% retracement level, and exit if price breaks the recent high.
If NQ does this, ES should also do this. They may not look completely like in terms of, you know, this one's a bit lower, but they took the same low. For me, this is a well-delivered market. I don't like this. I look for the divergences between the two because it shows relative weakness on a single asset. NQ rallied. This is, say, this is 9 AM, this is 10, and then trades lower, trades higher, and then does this, and then trades into around 50% of that range. At this specific point, ES does this. So ES runs this existing high. I more about this chart from a volume perspective because this chart has the most volume. If this is going to just do this, it can do that, and this could just do this as well. My invalidation for this is that— why? Because this shouldn't then go on to break this high. This should continue below here, and this is what I'm looking for. Again, 50% of this around there, yeah, right? I'm looking for that, and then I'm looking for a breakdown in and around this area.
