Trading Room RECAP 8.26.25

KEY LINKS:

Trader Wisdom Quote of the Day:

“I have no control over the trade outcomes. I can only control the orders I enter — the orders MUST COMPLY with specific CRITERIA and RULES for entering and exiting trades.”


Morning Session

  • Opening trade featured wide-bodied indecision candles, creating early chop: “Chop Salad with no dressing”.

  • Key pivot level identified at 6453 (PL) with traders noting flat VWAP/EMAs and lack of clear directional momentum.

  • Macro Data: US CB Consumer Confidence came in slightly better-than-expected at 97.4 (Forecast 96.5, Previous 97.2).

  • Early price action consolidated between 6437 support and 6460 resistance.


Midday Session

  • Market consolidated around the 6455 Line in the Sand (LIS).

  • Bull Scenario: Hold above 6455 with upside targets 6465–6470.

  • Bear Scenario: Fail below 6455 with downside targets 6440–6435.

  • Traders took a break awaiting the 2 PM “Shake n Bake” move.

 

Afternoon Session

  • Precision upside targets achieved:

    • 🎯 6465 target hit with ultra precision

    • 🎯 6470 squeeze fulfilled

  • Strong short-covering rally and Gamma Squeeze ripper into the close.

  • Market On Close (MOC) imbalance surged from +$1B to +$1.7B buy side


Closing Highlights

  • End of day rally tagged 6485.

  • Multiple participants noted the “Best rally all day” driven by forced short covering in SPX 6455 calls.

  • Recap sentiment: Patience paid off — as one trader put it:

    “As the day goes on the read gets clearer, there will be a good trade in here at some point.”

 

Summary:
August 26th delivered a measured morning chop, a disciplined consolidation around LIS 6455, and finally a late-session gamma-fueled squeeze that powered ES to 6485. Precision targets were met, with bulls commanding the afternoon surge.

Comments are closed.