Theme of the Day:
🎯 “Liquidation Day – Controlled Burn Before the Reclaim.”
Cycle Day 3 brought its typical shakeout energy, delivering a textbook liquidation phase that hit key projections before stabilizing into the close.
Market Behavior Summary
The S&P (ES) unraveled early, extending downside pressure from the 6796.5 and 6776.5 triggers Manny outlined pre-market. Price fulfilled the Cycle Day 3 range projection down to 6768.50, which also aligned with PTGDavid’s correction level mid-session — confirming the structural low for the day.
From open through late morning, all bounces were swiftly sold as sellers maintained full control. The 6785–6790 zone acted as a magnet — first as a breakdown point, later as resistance through multiple failed reclaim attempts.
Despite the sharp morning decline, structural supports beneath 6768.50 remained intact, leaving the broader bullish framework unviolated. By the afternoon, MOC flows flipped the tone with a $5.3B buy imbalance, a reminder that the “Big Boyz” were quietly reloading inventory at a discount.
Key Tactical Highlights
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Pre-Market Plan (Manny):
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Support Buys: 6796.5 and 6776.5 (Both failed early)
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Continuation Long: 6810+ invalidated as liquidation took hold
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LB&F: 6794 attempt rejected — confirming sell-side dominance
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PTGDavid:
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Declared “Liquidation Day” by 10:30 AM.
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Cycle Day 3 projections (6775 → 6768.50) hit with precision.
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Later reaffirmed that despite the decline, “key structural supports have NOT been violated.”
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Afternoon MOC imbalance ($5.3B buy) confirmed BTFD behavior returning into the close.
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Notable Observations:
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89EMA served as a supply line all day — each tag met with fresh selling.
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Timing windows held: 10–10:55 (High), 11–12:15 (Low), 2–2:55 (Secondary High).
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The “Liquidation then Accumulation” rhythm stayed remarkably clean.
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Cycle & Series Context
Today marked Series S1H — the first day of the new 4-day series, typically featuring minimal pivots but major structural definition. As Manny reminded, the final hour’s H/L sets the tone for the next three days, making today’s 6768.50 low especially significant heading into Friday.
PTG Quote of the Day
“Cycle Levels are VooDoo — until they hit to the tick.”
— PTGDavid
Outlook for Friday (Cycle Day 1)
With liquidation objectives satisfied and a strong MOC bid confirming institutional demand, watch for Cycle Reset behavior — early consolidation or mild back test of 6768.50 support, then a potential BTFD rally leg if bulls can reclaim 6785–90.