Cycle Day 2 delivered exactly what the playbook anticipated: continuation and expansion.

Key Themes of the Session

• Overnight upside targets in @ES and @NQ were fulfilled early.
• Initial reversal developed from the D-Level before buyers regained control.
• Early expectation called for MATD Rhythms, which played out cleanly throughout the session.
• Hot PPI inflation data briefly pressured sentiment:
  • Core PPI MoM: 1.0% vs 0.3% est
  • PPI MoM: 1.4% vs 0.5% est
• Despite inflation concerns, the market continued displaying persistent upward acceptance.

Important Structural Levels

• 7410 LIS (“Line in the Sand”)
  • Successful back test early in the session.
  • Established the foundation for continuation higher.
• 7420 LIS Zone
  • Midday back test held firmly.
  • Triggered continuation rally back toward prior highs.

Intraday Narrative

• Early bias leaned:
  • Sell-side on bounces
  • Premium sell setups
  • ONL retest focus
• As price rotated back toward mid-VWAP, expectations shifted toward:
  • More balanced two-way trade
  • Responsive rotations
• Buyers ultimately maintained control as:
  • “The Perpetual Rally”
  • “Range Runner and Beyond”
  • “Money Box In-Play”
    all evolved into a late-session acceleration phase.

Late Day Expansion

The session transitioned into what was described as a:

“Parabolic Blow-off Phase”

Key upside projection:

• Cycle Day 2 Penetration Target: 7482.71

Price continued pressing higher into the close with:

• ES closing near session highs
• Persistent trend continuation
• Strong momentum acceptance into settlement

Closing Action

• Initial MOC Sell Imbalance:
  • -$4.0 Billion
• First notable sell imbalance seen in some time.
• Later paired off, reducing late-session downside pressure.

Overall Read

Another textbook example of:

• Strong Cycle Day continuation
• Buyers defending pullbacks
• Trend persistence overwhelming macro concerns
• Market refusing meaningful downside acceptance

The “Train Kept a Rolling.”