S&P 500 (ES)

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Cycle Day 1 | Precision > Prediction

Cycle Day 1 delivered exactly what it advertises: range expansion, emotional headlines, and a market that punished impatience. From the opening bell, sellers seized control — and PTG levels did the heavy lifting all day long.

For greater detail of how this day unfolded, click on the Trading Room RECAP 1.14.26 link.

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Transition from Cycle Day 1 → Cycle Day 2

3-Day Cycle Objective (Quick Refresher):
Establish a secure low from which to launch a rally over the next two cycle days.
Wash. Rinse. Repeat. 🌀

The prior session—well documented in the RECAP—delivered a textbook Cycle Day 1 liquidation. Sellers did their job, emotion got wrung out, and price tagged a precise secure low inside the Violation Zone, perfectly aligned with the D-Level Money Box. No drama. Just structure doing what structure does.

From there, the cycle script flipped right on cue. Price has already ignited the cycle rally, closing +37 handles off the 6923.25 low. Bulls have seized the baton.

Cycle Day 2 Objective:
Maintain directional dominance if any residual back-selling attempts surface. The most typical and healthiest behavior from here is the development of a balanced consolidation zone—a pause that refreshes, not a reversal. This is standard CD2 rhythm: digestion, acceptance, and preparation for continuation.

In short:
CD1 set the trap.
CD2 decides who controls the room.

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🎯 Cycle Day 2 Focus — Scenarios in Play

🟢 Bull Case (Buyers Stay in Control)

• Hold north of 6950 ± 5

• Upside objectives:
  6965 → 6970 → 6975

Momentum remains constructive as long as acceptance holds above the pivot zone.

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🔴 Bear Case (Rotation / Reset)

• Hold south of 6950 ± 5

• Downside objectives:
  6935 → 6930 → 6925

Failure to reclaim the pivot opens the door for a controlled reset—not a collapse.

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📊 Key Reference Levels

• PVA High Edge: 6970

• PVA Low Edge: 6936

• Prior POC: 6963

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⚠️ Tactical Takeaway

Of course, nothing changes for PTG…Simply follow your plan. Take only Triple A setups and manage the $risk. ALWAYS HAVE HARD STOP-LOSSES in-place on the exchange.

PTG’s Primary Directive (PD) is to ALWAYS STAY IN ALIGNMENT with the DOMINANT FORCE.

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   ESH

Nasdaq (NQ)

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Transition from Cycle Day 1 to Cycle Day 2

A key theme repeatedly highlighted in prior briefings was the Nasdaq’s (NQ) persistent failure to confirm the S&P 500’s (ES) all-time highs. This divergence was not a footnote—it was a flashing yellow caution light. Historically, when the generals march higher but the tech troops refuse to follow, trouble isn’t far behind.

Those who heeded the warning lived to trade another day. Those who chose the “bold know-it-all” route were promptly reminded that hubris is not a strategy.

The market delivered its verdict swiftly. The Cycle Day 1 decline marked Nasdaq’s largest downside move since mid-December, validating the divergence signal and reinforcing why confirmation—or lack thereof—matters.

Lesson reinforced. Tape respected. Cycle mechanics intact.

Is this a one-day anomaly or something more sinister? Traders are liquidating first (which we expect will continue) until price and volume pair that traders/investors consider more attractive value. For the short-term, momentum traders are pushing for additional downside liquidation.

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🎯 Cycle Day 2 – Trading Focus

Key scenarios in play for today’s session:

🟢 Bull Case

Holding north of 25595 ±10 pts opens the door to upside continuation toward:
25660 → 25675 → 25695

🔴 Bear Case

Holding south of 25595 ±10 pts keeps downside pressure intact with targets at:
25550 → 25515 → 25500

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Reference Levels

• PVA High Edge: 25621

• PVA Low Edge: 25443

• Prior POC: 25500

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NQH

Economic Calendar

Trade Strategy: Our tactical trade strategy will simply remain unaltered…We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus on Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.

Stay Focused…Non-Biased…Disciplined  ALWAYS USE STOPS!

Good Trading…David

“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –BR

*****This trade strategy report is disseminated for “education only” and should not be viewed in any way as a recommendation to buy or sell futures products.”

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone.

Disclaimer: Futures, Options, and Currency trading all have large potential rewards, but they also have large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don’t trade with money you can’t afford to lose.

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CFTC RULE 4.41 –HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN