$NQ Divergence Is Back, Is Another Correction Setting Up?
The multi-month divergence has returned, and it’s becoming one of the key setups I’m watching right now.
While $E-mini S&P 500 - main 2609(ESmain)$ and $E-mini Dow Jones - main 2609(YMmain)$ pushed well above their June highs, $NQ Minerals PLC(NQMIY)$ remains significantly below its June peak.
That disconnect matters.
Now all three major futures indices are pulling back, bringing back a setup that previously preceded the correction earlier this year. ⚠️
📊 The Divergence
$ES and $YM managed to make fresh highs while $NQ failed to confirm.
When one major index repeatedly lags while the others continue higher, it can signal that market breadth and leadership are becoming less synchronized.
And when the divergence persists for months, I pay even closer attention.
🔄 The Same Setup Is Reappearing
This is essentially the same type of structure I used to identify the correction earlier this year.
I'm not saying divergence alone means the market has topped.
But historically, this kind of non-confirmation near extended highs is something I want to see before considering a larger reversal scenario.
The important part now is confirmation.
🎯 Waiting for the Trigger
For now, I'm not jumping into a short simply because the divergence is visible.
The setup is there.
The indices are pulling back.
But I still want the sell signal before taking the bearish thesis further.
That's the difference between anticipating a move and trading confirmation.
If the signal triggers, this divergence could become much more significant.
Until then, patience. 👀
Divergence is the warning. The sell signal is the trigger. 📉🎯
What do you guys think — are $ES and $YM about to catch down to $NQ, or can $NQ finally catch up? 🤔
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