Cycle Day 2 | Consolidation > Celebration

Good morning opened with business as usual: links posted, charts prepped, and the rhythm of Cycle Day 2 firmly in play. No fireworks promised—and the market largely honored that contract.

Morning Tone

• Early participation confirmed expectations for normal Cycle Day 2 back-and-fill.

• ISM chatter surfaced briefly, but nothing actionable followed.

• Mid-morning volatility spike chalked up to a classic “fat-finger Freddie” moment—later tied to NVDA / China headline risk, which explained the quick air pocket.

Midday Programming Note

• Charts were set before a brief doctor’s appointment hiatus.

• Market held together structurally during the absence—always a good sign when price behaves without supervision.

Afternoon Shift: Bulls Lose Their Footing

The tone changed materially late afternoon.

• A clear break of the 6985 “Line in the Sand” triggered downside rotation.

• Sellers pressed their advantage methodically—not panic, just pressure.

• Downside targets unfolded precisely as outlined in the Daily Trade Strategy:

  • 6970 → 6965 → 6955

Market Read

🔴 Bear Case (Rotation / Reset)
Holding south of 6985 ±5 keeps the reset scenario in play. Failure to reclaim the pivot invites further controlled downside—reset, not collapse.

Bottom Line

Cycle Day 2 did exactly what it was supposed to do:

• Consolidate, frustrate, and rotate.

• ATHs don’t require applause—they require follow-through.

• Respect the pivot, trade the edges, and let price do the talking.

Have a great evening, everyone. See you in the next rhythm.