S&P 500 (ES)
Prior Session was Cycle Day 2: Hard break selloff on disappointing outlook for additional rates cuts in 2025 had traders rushing for the door. Range for this session was 241 handles (4X the average) on 2.156M (2X) contracts exchanged.
FREE TRIAL link to PTG/Taylor Three Day Cycle
For a more detailed recap of the trading session, click on this link: Trading Room RECAP 12.18.24
…Transition from Cycle Day 2 to Cycle Day 3
Transition into Cycle Day 3: Price settled near lows on the day with strong selling momentum.
Price is also well below CD1 Low (6114.25), so it is going to be a steep hill to climb for the bulls to recover. Cycle failures represent 7.25% of the occurrences covering fifteen years of tracking. This maybe be one of those cycles.
Odds of Rally > 10 = 88%…> 20 = 68% Average Range CD3 = 56.41
PTG’s Primary Directive (PD) is to ALWAYS STAY IN ALIGNMENT with the DOMINANT FORCE.
As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 5935, initially targets 5955 – 5970 zone.
Bear Scenario: Price sustains an offer below 5935, initially targets 5915 – 5905 zone.
PVA High Edge = 6148 PVA Low Edge = 6012 Prior POC = 6012
ES (Profile)
Nasdaq (NQ)
Prior Session was Cycle Day 2: MAGS 7 liquidation “fire-sale” pummeled the tech sector (-4.41%). Range for this session was 1076 (3X average) handles on 642k contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
Transition into Cycle Day 3: Price settled near lows on the day with strong selling momentum.
Price is also well below CD1 Low (22244.25), so it is going to be a steep hill to climb for the bulls to recover. Cycle failures represent 7.25% of the occurrences covering fifteen years of tracking. This maybe be one of those cycles.
Odds of Rally > 10 = 96%…> 20 = 85% Average Range CD3 = 320.50
PTG’s Primary Directive (PD) is to ALWAYS STAY IN ALIGNMENT with the DOMINANT FORCE.
As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 21500, initially targets 21630 – 21715 zone.
Bear Scenario: Price sustains an offer below 21500, initially targets 21418 – 21353 zone.
PVA High Edge = 22386 PVA Low Edge = 21831 Prior POC = 22301
NQ (Profile)
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.
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