S&P 500 (ES)
🟡 FRYday | Cycle Day 1 | EOM Window Dressing
Context
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PTGDavid under the weather ☕🤧 → no verbal briefing
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Charts stayed live, playbook stayed intact
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End-of-Month + FRYday = Capital Preservation Rules in effect
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📉 Cycle Day 1 Did Exactly What CD1 Does
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Lower projection 6922 handle ✔️ tagged overnight
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CD1 average decline zone (6922–6905) already fulfilled
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Translation: Inventory reset complete. Box checked.
CD1 = not a verdict, not a prophecy — just the market stepping on the scale and lying about its diet.
For greater detail of how this day unfolded, click on the Trading Room RECAP 1.30.26 link.
Transition: Cycle Day 1 → Cycle Day 2
Before diving into today’s gameplay, it’s worth taking a quick look in the rearview mirror at how January unfolded and finished. As the old market adage goes:
“So goes January, so goes the year.”
January didn’t whisper—it spoke clearly.
January 2026 Performance Snapshot
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Monthly Return: +1.4%
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Major Milestone: The index breached the historic 7,000 level for the first time on January 28, 2026
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Record High: 7,002.28 intraday, also on January 28
The catalyst mix was familiar but powerful: AI optimism, strong technology earnings, and momentum traders pressing the gas pedal once the psychological ceiling cracked. January closed the month acting like a market that knows exactly where it wants to be.
Cycle Day 2 – Gameplay & Expectations
The primary objective for Cycle Day 2 is straightforward and textbook:
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Successful back test of the Cycle Day 1 low at 6917.50
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Hold that level to confirm support
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Then begin rebuilding upside momentum to extend the cycle rally
If support is secured, upper cycle targets remain in play between 7010 – 7025.
Normal CD2 behavior favors:
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Balance
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Consolidation
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Energy reloading rather than immediate expansion
Think digestion, not indigestion. The market doesn’t need to sprint today—just needs to prove it can stand on its own two feet before pushing higher.
🎯 Cycle Day 2 Focus — Scenarios in Play
🟢 Bull Case (Buyers Stay in Control)
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Hold north of 6965 ± 5
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Upside objectives:
6975 → 6985 → 6990
Momentum remains constructive as long as acceptance holds above the pivot zone.
🔴 Bear Case (Rotation / Reset)
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Hold south of 6965 ± 5
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Downside objectives:
6945 → 6935 → 6925
Failure to reclaim the pivot opens the door for a controlled reset.
📊 Key Reference Levels
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PVA High Edge: 6975
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PVA Low Edge: 6946
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Prior POC: 6965
⚠️ 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 1 to Cycle Day 2
The Nasdaq Composite (^IXIC) wrapped up January 2026 with a +0.97% monthly gain, closing at 23,461.82.
Mid-month was classic tech leadership:
AI optimism humming, semiconductors flexing, momentum traders feeling invincible.
But the month didn’t end with a victory lap. A late-cycle stumble in memory chip prices pulled the rug just enough to remind everyone that gravity still exists — even in an AI bull market.
Cycle Day 2: The Real Work Begins
Cycle Day 1 delivered the inventory reset.
Cycle Day 2 is about discipline.
The challenge is well known and rarely glamorous:
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Stabilize price action
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Find acceptance between buyers and sellers
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Build a base, not a headline
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Let balance do the heavy lifting before the next rally attempt
No fireworks required.
No hero trades demanded.
If price can hold structure and digest supply, the path higher stays open.
If not — the market goes back to negotiating, same rules, new session.
Cycle Day 2 isn’t about excitement.
It’s about earning the next push
🎯 Cycle Day 2 – Trading Focus
Key scenarios in play for today’s session:
🟢 Bull Case
Holding north of 25645 ±10 pts opens the door to upside continuation toward:
25795 → 25846 → 25905
🔴 Bear Case
Holding south of 25645 ±10 pts keeps downside pressure intact with targets at:
25507 → 25446 → 25395
Reference Levels
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PVA High Edge: 25846
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PVA Low Edge: 25615
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Prior POC: 25708
⚠️ 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
https://www.investing.com/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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