ES, NQ, YM and TF are correlated instruments. Monitoring Divergence in price action between these instruments reveal a lot on the underlying strength of the Market. Divergence may be used as another criteria in detecting market strength along with Market Internals, Volume distribution etc. Please note that these instruments could move in divergence for days but eventually they will correct.
Divergence may be used as an additional criteria for gauging market strength.
Consider the following example from 02/28/2014.
Market opened and started trading higher. At 9:16 AM EST, both ES and NQ made highs. At 9:34 AM ES make higher high but NQ failed to make higher highs. At 10:56 AM ES made yet another high but NQ again failed to move higher. Observing price action from 11:00 AM to 12:42 PM revealed the continuing divergence between ES and NQ. Market Internals were having a slight upside bias BUT when divergence exist in the instruments, it will start correcting at some point. Please note, in this case NQ may catch upto ES and YM or ES and YM could correct .
All the instruments move in tandem during a Trend Day. If one of them is trailing behind, there is a very good probability for the current move to loose steam and reverse.
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