S&P 500 (ES)
Prior Session was Cycle Day 2: Doing Cycle Day 2 Things
The BFTD crowd did show up as anticipated, but they failed to sustain a controlling bid above the 6890 key over/under. That failure immediately put bulls into defensive mode — and defense is never a position of strength.
This wasn’t a simple slip on a soap bar. Bulls found themselves skating on black ice, unable to maintain footing as the slope tilted against them.
Market-Makers (aka M&M’s) exploited the environment perfectly, running pivot stops throughout the session with surgical precision. For traders identifying the D-Level Money Box (DLMB) in advance, the zone once again delivered edge — staying aligned with the M&M’s on reversal plays instead of becoming liquidity for them.
DLMB Mantra:
“Measure Twice… Cut Once.”
For greater detail of how this day unfolded, click on the Trading Room RECAP 1.20.26 link.
…Transition from Cycle Day 2 to Cycle Day 3
Transition into Cycle Day 3: Cycle Statistic Challenge
Currently the Three-Day Cycle Statistic stands @ 92%. Meaning Price is Greater Than (above) the Cycle Day 1 Low on Cycle Day 3.
Price will need to recover nearly 50 handles to secure the statistic or risk a rare (8%) failed 3-day cycle. Do not rule out an explosive ripper short-squeeze on this cycle day. Markets have a unique way of getting the most traders wrong-footed, then teaching them who is the “boss-man”.
Protect inventory. Let others overtrade.
There’s always another cycle coming.
— PTG
🎯 Cycle Day 3 Focus
Scenarios to consider for today’s trading.
🟢 Bull Case
-
Hold north of 6845 +- 5 pts targets 6865…6875…6885
🔴 Bear Case
-
Hold south of 6845 +- 5 pts targets 6830…6825…6820
PVA High Edge = 6883 PVA Low Edge = 6822 Prior POC = 6831
⚠️ 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.
ESH
Nasdaq (NQ)
…Transition from Cycle Day 2 to Cycle Day 3
Transition into Cycle Day 3: Canary in the Mine
The DTS Briefing has been flagging this for days: a clear divergence between NQ & ES. All it took was a catalyst to ignite the downside—tariffs provided just enough cover for traders and money managers to run for it, dumping high-beta darlings.
Here’s the twist: the so-called “AI-Trade” and MAGS 7 are crowded trades. Once selling momentum kicks into overdrive, who’s left to buy? Selling only stops when every long position holder (basically everyone) realizes they’re just chopping away at their own equity.
The result? A potential monster short-squeeze waiting to catch the latecomers who piled in too late on the down move. In Cycle Day 3 terms: volatility is the miner’s canary, and today, the market is screaming.
🎯 Cycle Day 3 Focus
Scenarios to consider for today’s trading.
🟢 Bull Case
-
Hold north of 25145 +- 10 pts targets 25220…25235…25265
🔴 Bear Case
-
Hold south of 25145 +- 10 pts targets 25095…25050…25025
PVA High Edge = 25339 PVA Low Edge = 25101 Prior POC = 25130
⚠️ 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.
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.
This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
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