Thursday — February 5, 2026
Theme of the Day: Long Liquidation
📌 Big Picture
Cycle Day 2 did exactly what Cycle Day 2 is allowed to do — test conviction.
What it did not do… was inspire confidence into the close.
The session started textbook. It ended diagnostic.
🔄 Cycle Day 2 — Mission Brief
The objective was clear and simple:
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Back-test the Cycle Day 1 low at 6862.50 (not required, but valid)
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Hold to confirm support
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Begin rebuilding upside momentum
✔️ Back-test achieved
❌ Follow-through failed
CD2 behavior favors balance, digestion, and energy reloading — but only if buyers can defend territory. That defense cracked late day.
🎭 Intraday Storyline
Early trade delivered a clean DLMB / Cycle Violation reversal, producing a sharp buy response out of deep statistical zones. Bulls showed up… briefly.
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Strong reactions from CD2 violation levels
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Rally back toward VWAP / neutral
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Long inventory repriced lower
But then came the reality check:
Late-day pressure returned — and stuck.
Price rotated back into lower CD2 statistical violation territory, closing on the lows despite a $300M MOC buy imbalance that failed to move the needle.
That’s not absorption.
That’s distribution winning the day.
📉 What the Tape Told Us
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Downswings carried heavier volume
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Attempts to stabilize lacked sponsorship
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Buyers defended levels, but couldn’t advance value
By the close:
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ES back near 6813s
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Bulls on defense
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Risk firmly OFF
David’s call summed it up perfectly:
“Not a good showing for the Bulls… Long Liquidation.”
Add in crypto weakness and correlated pressure, and the message was loud and clear.
🎯 Tactical Takeaway
Nothing changes for PTG:
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Trade the plan
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Take Triple-A setups only
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Manage risk first
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Always stay aligned with the Dominant Force
Cycle Day 2 didn’t fail — it revealed.
And what it revealed was who still has work to do.