S&P 500 (ES)
🧱 Cycle Day 2 Recap
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
For greater detail of how this day unfolded, click on the Trading Room RECAP 2.5.26 link.
Cycle Day 3: Uphill Battle to Reclaim the Cycle Day 1 Low
Markets find themselves in a rare and uncomfortable position — deeply below the Cycle Day 1 Low (6862.50) following the recent long-liquidation event.
Historically, 92% of Cycle Day 3 sessions trade back above the CD1 Low, but this cycle is asking a tougher question than usual. The distance back to that level is meaningful, and reclaiming it will not come easily.
That said… never count out a Ripper Rally.
The recent sell-down served its purpose:
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Older longs successfully liquidated higher-priced inventory.
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Supply rotated into stronger hands at lower prices.
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Weak longs flushed. Late shorts grew confident.
That’s the exact cocktail bulls look for.
Now the objective shifts: advance cheaper inventory higher, apply pressure to complacent shorts, and potentially trigger a classic squeeze-play. If momentum ignites, price could accelerate fast enough to reclaim the Cycle Day 1 Low and preserve the Positive 3-Day Cycle statistic.
This is a battlefield session, not a trend day by default. Expect volatility, rotation, and decisive responses at key levels.
🎯 Cycle Day 3 Focus
Scenarios for today’s trade
🟢 Bull Case
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Hold north of: 6785 ± 5
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Upside targets:
6830 → 6845 → 6865 -
Squeeze dynamics increase above 6830 with momentum acceptance.
🔴 Bear Case
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Hold south of: 6785 ± 5
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Downside targets:
6765 → 6750 → 6740 -
Failure to reclaim value keeps pressure on and extends liquidation.
🔍 Key Reference Levels
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PVA High Edge: 6847
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PVA Low Edge: 6805
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Prior POC: 6821
Bottom line:
Cycle Day 3 doesn’t require a rally — but if bulls seize control, the tape could move fast and punish hesitation. Stay flexible. Let price prove the path.
— PTGDavid
⚠️ 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
Cycle Day 3 – The “Magnificent 7” Get Their Redemption Shot
Lately, the so-called Magnificent 7 have misplaced their crown.
Following aggressive long-liquidation pressure, the market has rechristened them the “DRAGS-7” — a label earned, not given.
Now enter Cycle Day 3.
With price trading well below the Cycle Day 1 low (24,783.50), the MAGS-7 are staring at a moment of truth. This is their window to reclaim lost ground, restore credibility, and remind the market why they once carried the title.
Is the task monumental? Absolutely.
But that’s the job description.
You’re the MAGS-7.
Now show the market your magnificence.
— PTGDavid
🎯 Cycle Day 3 Focus
Scenarios to consider for today’s trading.
🟢 Bull Case
-
Hold north of 24407 +- 10 pts targets 24545…24683…24783
🔴 Bear Case
-
Hold south of 24407 +- 10 pts targets 24335…24289…24208
PVA High Edge = 24790 PVA Low Edge = 24568 Prior POC = 24600
⚠️ 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.”
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