Conditional formatting works but it's off by one row

[DashboardNovice]

In the attached file, I have conditional formatting applied so that any instance of #N/A is colored with red font. But notice how it is off by one row. I have this rule applied to the entire columns E:F. Does this have something to do with it?

 

[Hui]

Because you have selected the range $E:$F to apply the CF to, the first cell in that range is E1
Your CF formula is =ISERROR(E2)
But it should be =ISERROR(E1)