S&P 500 (ES)
Prior Session was Cycle Day 2: The Chop Was Real, The Patience Was Required
Market Rhythm
Welcome to Cycle Day 2 — the day that traditionally behaves like a caffeinated toddler with a Nerf bat. True to form, CD2 delivered turbulence, a two-way draw, and enough psychological warfare to make Sun Tzu crack a smile.
Overnight ES tagged the lower target zone with a clean buy response, then probed the upper objective from the DTS plan. From the open, the market played the classic CD2 game:
look strong → look weak → gaslight everyone → repeat.
As stated in the DTS:
“Both sides shuffle for position and attempt to gas-light each other into submission.”
Check. Verified. Signed in blood.
Range was 51 handles on 1.391M contracts traded.
For greater detail of how this day unfolded, click on the Trading Room RECAP 12.2.25 link.
…Transition from Cycle Day 2 to Cycle Day 3
Transition into Cycle Day 3: “Wild-Card Wednesday: Squeeze Play or Ambush?”
The initial Cycle Target at 6849.37 has already been tagged and bagged during the prior session, officially checking the Cycle Day 3 prerequisite box. With that milestone secured, the Chicago Bulls have the tactical high ground — for now.
They’ve staked out additional upside cycle targets in the 6878.56 → 6900.96 corridor. But before they start planting victory flags, price still needs to Clear and Convert the prior high at 6863.50. Only then can they establish upper-structure dominance and trigger the classic CD3 squeeze play that sends shorts scrambling for fire exits.
But… this is CD3 — and nothing is ever guaranteed.
Standing opposite the field: the Chicago Bears, sharpening their claws and eyeing a counteroffensive. Their mission is simple and brutal:
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Break 6802 (Cycle Day 1 Low)
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Seize the lower corridor
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Open the chute toward 6775 → 6761.50 radar targets
A clean break below 6802 would flip the script fast, shifting the day from “Bulls managing momentum” to “Bears initiating a controlled demolition.”
Given that the initial 3-Day Cycle target has already been fulfilled, we’re labeling today a full-blown “Wild-Card Session.”
Translation:
Expect misdirection, traps, velocity shifts, and a lot of traders pretending they knew it was coming all along.
Stay nimble, stay tactical — and let today’s order flow declare which Chicago faction actually showed up to play.
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.
As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 6840+-, initially targets 6855 – 6865 zone.
Bear Scenario: Price sustains an offer below 6840+-, initially targets 6825 – 6815 zone.
PVA High Edge = 6851 PVA Low Edge = 6831 Prior POC = 6840
ESZ
Nasdaq (NQ)
Prior Session was Cycle Day 2 “Broadway Bulls Take Center Stage”
Prior Session was Cycle Day 2, and the NAZ strutted across the stage like it was auditioning for the lead in the next Broadway blockbuster. With perfect choreography, buyers punched cleanly above the CD1 high and marched price straight into the 1.618 Fibo Extension of the prior session’s range — the Golden Ratio, the market’s version of “hit your mark, darling.”
And hit it they did.
After nailing that opening act, we got a dramatic midday reversal — the kind where the orchestra goes quiet and everyone leans in. Price dipped back to a precise retest of the 25,400 Line in the Sand, only to deliver a textbook range-runner reversal back to the highs. A true callback performance… and yes, they secured the lead role.
Performance Stats:
🎭 Range: A lively 345 points
🎟️ Volume: Solid 554K contracts — enough audience participation to keep the show funded through closing night.
Broadway-worthy action. Standing ovation earned.
…Transition from Cycle Day 2 to Cycle Day 3
Transition into Cycle Day 3: Broadway Edition
The Nasdaq struts onto the Cycle Day 3 stage like yesterday’s performance wasn’t just strong — it was a full-fledged standing-ovation moment. The question now: Do the Magnificent 7 have the stamina for an encore, or was that last act their big finale?
🎭 Bullish Scenario – “The Encore Performance”
If our MAGS-7 stars decide to hit their marks again, the upside script is already written.
Spotlights are pointed straight at the unfilled upside Cycle Day 3 targets:
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25688 → 25726.34 (first curtain rise)
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25833.36 (the big Broadway finish)
If buyers keep control of the tempo and rhythm, CD3 could deliver the kind of extension move that makes portfolio managers hum show tunes.
🐻 Bearish Scenario – “Da Bears Try to Cancel the Show”
For the Bears, this is the part of the playbill where the antagonist enters stage left… but the crowd isn’t exactly cheering.
To crush the bullish momentum, sellers must force a decisive rejection and drive price into the downside CD3 objectives:
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25368.24 → 25253.72 (initial counter-performance)
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25193.25 (deep measure — the plot twist no bull wants)
It’s a tall order. Not impossible… but definitely requiring a Tony-level performance.
🎬 Wildcard Factor – “Expect Drama”
Cycle Day 3 is our Wild-Card Day — think improv theatre with strobe lights.
Momentum, traps, squeezes… all fair game.
Price action today is more Broadway jazz-hands than textbook economics. Eyes open. Cues ready. Today might give us that “I was there when…” storyline.
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.
As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 25600+-, initially targets 25688– 25726 zone.
Bear Scenario: Price sustains an offer below 25600+-, initially targets 25546 – 25512 zone.
PVA High Edge = 25642 PVA Low Edge = 25512 Prior POC = 25597
NQZ
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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