NASDAQ sold off 5.46% while S&P down 2%; SMT divergence correctly identified NASDAQ high as fakeout.

NASDAQ ended up selling off 5.46%, whereas the S&P only traded down 2%. But again, SMT divergence at a key level gave us a clue that this new high on the NASDAQ was indeed a fake out. So what are key takeaways? Number one, SMT divergence is when you have two correlated assets. Disagree at a key level or swing point. Bitcoin makes a lower low, ETH makes a higher low. NASDAQ makes a higher high, S&P makes a lower high. It only matters at key swing points and it matters between correlated assets. SMT divergences in the middle of nowhere, don't mean anything, it's just noise.