Market Recap – PTGDavid’s 3-Day Cycle Analysis for October 25, 2024

The session today saw strategic plays and precise technical maneuvers as PTGDavid and the PTG Traders navigated bullish momentum on Cycle Day 3, advancing the week’s goals with keen attention to key levels.

Here’s a breakdown of the action and insights provided throughout the day:

Opening Push and Early Targets
Overnight trading held firm above 5850, establishing it as the “Line in the Sand” (LIS) for the day. Bulls quickly achieved the initial upside target range of 5865–5870. With this zone converted to support, the path was clear for higher targets, and bullish momentum was further solidified as the 3-Day Cycle trended positively.

Bullish Objectives and Option Strategy
PTGDavid noted that CALL option holders were well-positioned to benefit from the Cycle Day 3 rally, which was tracking at over a 2:1 return and, for some, achieving a 4:1 profit ratio depending on strike selection. His strategy involved playing the 581 CALL from Cycle Day 1, expiring today, which proved advantageous as the market sustained gains above the key zones.

Resistance and Midday Shift
In the mid-session, the price hit an upper target near 5900 before sellers increased their activity, shifting the Point of Control (POC) down to 5895. PTGDavid anticipated this selling response as a natural cap in the 5900 region, noting that further buying would require buyers to defend the 5885 level on pullbacks. He adapted his strategy, opting to sell into bounces to maintain alignment with emerging market sentiment.

Afternoon Action and Technical Precision
Classic “Look Above and Fail” (a.k.a. “The Whiplash”)  pattern emerged, with prices dropping back to the 5850 LIS amid a lunchtime reversal. The NYSE TICKS and Weighted Advance Decline Line also turned negative, signaling bearish sentiment. 

Closing Imbalance and Final Recap
As the session wound down, a substantial MOC (Market on Close) sell imbalance of $1.8 billion was observed, bringing the day to a close near the 5850 LIS. PTGDavid summarized the day as a well-executed cycle, with clear adherence to technical strategy and disciplined adjustments based on market dynamics.

Summary: The day was a calculated close to a successful 3-Day Cycle, with PTG Traders capturing gains and closing out a strong week. The precision in technical analysis and response to intraday market shifts reinforced the efficacy of PTG’s strategy, wrapping up the session near the initial LIS of 5850.