S&P 500 (ES)

Prior Session was Cycle Day 3: Wild-Card Day

Theme of the Day:
Overnight Bear Case → Morning Tug-of-War → Order Flow Save → Range Respect

Overnight / Pre-Market

• The Bear Case unfolded as advertised, with ES probing into the 6940–6930 target zone overnight.

• Early buyers stepped in, producing a rebound back toward Prior Low (PL ~6957).

• Market opened with a clear question:
  Can bulls reclaim control above 6965, or does rotation continue lower?

For greater detail of how this day unfolded, click on the Trading Room RECAP 1.8.26 link.

---

…Transition from Cycle Day 3 to Cycle Day 1

Transition into Cycle Day 1: “End-of-Week Decline?”

As the first full trading week of the new year draws to a close, the scorecard between bulls and bears remains remarkably balanced. Early weakness on (last Friday) was effectively countered by a week-long process of structure repair, leaving neither side with a decisive advantage.

Yesterday’s game plan played out precisely as scripted. The lower objective in the 6940–6930 zone was tagged, followed by a late-session response that carried price back to the 6975 upside target. Textbook rotation.

Now, attention shifts to Cycle Day 1, which often serves as a tone-setter. The question is simple:
Will today act as the tie-breaker that tilts the weekly balance, or merely extend the rotational stalemate?

For traders, direction remains secondary. What truly matters is rotation and rhythm. Higher prices are no more “good” than lower prices are “bad”—both are simply expressions of a healthy, two-way auction. As long as the market continues to rotate with structure and respect key references, opportunity remains abundant on both sides of the tape.

Stay patient. Stay rhythmic. Let the market reveal its hand.

---

   ESH

Nasdaq (NQ)

---

…Transition from Cycle Day 3 to Cycle Day 1

Transition into Cycle Day 1: A-B-C Decline — EZ as 1-2-3

Cue the moonwalk. 🕺
@NQ backed it up in classic A-B-C fashion (yes, that Michael Jackson), pressing pause after a textbook Elliott Wave five-wave advance. Nothing broken — just the market doing what markets do best: reprice inventory, shake loose weak hands, and keep traders guessing.

Cycle Day 1 structure keeps the tape honest, with scope for additional downside exploration into the 25569 – 25525 zone. Lose footing below the prior CD1 low (25527.50) and the trap door creaks open, exposing unfinished business down near 25409.25. No drama — just math and memory.

The bull case? Simple, clean, and unapologetic. Reclaim 25760 – 25800 with authority, hold it, and watch for a pressure cooker squeeze through 25850. That’s where shorts start reconsidering life choices.

So what is it as we close out the week — Jammer/Slammer or Fizzle ’n Drizzle?
Stay tuned. Volatility loves a Friday cameo, and Nasdaq-Land never disappoints.

Stick around till the end…
Because in this market, the plot twist is always one candle away. 📉📈

---

---

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