Maybe some experienced index traders can help me out..
today at 11:30 est the NQ made a new high.. while the ES & YM did not. in fact they both made a double top..
Would this indicate weakness in all 3 indexes??
Would this be a short signal for anyone??
Would you only want to short the ES & YM.. and not the NQ since it seems stronger or would you want to shor the NQ being that it may have overextended its move??
As I'm writing this the NQ has fallen 3 points from the high..
Hope questions are making sense..
It's largely a question of probability. The YM and ES are both approaching the R of yesterday's high. The NQ is already past that. So is it more likely that the ES and YM will pull the NQ down if they fail this test, or that the NQ will pull both up?
Aside from all that, there are breakout, test, and reversal tactics to be considered. Do you have a strategy for each? If so, which criteria are being met?