Friday December 27 2024 SPY SPX ES Actionable Levels

$SPX dips and defends right at key level. How does $SPY wrap up the week?

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In yesterday’s letter, we wrote:

For tomorrow, I am closely watching the key SPX levels of 6025, 6011, and 5981.

Any defenses above 5981 are areas to get long and ride us through a 6046 breakout if it wants it.

If we chop and don’t really make a move—which wouldn’t be surprising after so many one-directional days—we likely range between 5997 or so and 6046/6058.

This is what happened. The market opened strong, with a significant dip and defense at the 6011 key SPX level right out of the gate. After that, we blasted all the way up to a high of 6049.75, exceeding the 6046 target and running over 40 points. The strength in the defense of 6011 set the tone for a bullish session, showcasing how critical these levels are.

See how well the levels work?

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What does the rest of the low volume holiday week bring? Can we just continue the rally higher?

More in the trade plan below.

Below, we’ll cover the actionable levels, how I played them today and what they mean for the next session.

Levels were incredible Wednesday. The overnight dip played right at the 5967 level, defended and then rallied 70+ points. Always trust the levels.

As we are at key resistance yet again and the low volume holiday week continues, how do we end on Friday?

More in the trade plan below.

Below, we’ll cover the actionable levels, how I played them today and what they mean for the next session.

Levels were really great. We got the dip & defense of 6011 and then ran 40+ points. This was a key level noted to get long. Always trust the levels.

Now we are sitting in AH right below the key 6034 resistance level. What does this mean and where do we go from here? Read below for my trade plan which includes actionable support & resistance levels, outlook for the next session and today’s trade recap.

Learn the system to make 1-3 low risk, high reward trades per day using SPY/SPX options.

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Trading Plan

Today was a nice dip and defense back to flat on expected low volume. Looking ahead, tomorrow appears to be a relatively quiet day for reports, with some economic data released prior to the open, followed by oil inventories in the afternoon. It will be important to monitor how the market reacts to these data points, as they could influence our next moves.

I am receiving some great questions from beginners. This is helping me develop guides for this group as well as the course. More to come but I’ve created a separate channel in the discord just so you can not be shy about bringing those questions to the group. No question is dumb, we grow stronger together!

In fact, I’ve created this single resource as a guide. It is a living document and we will continue updating it. You must be logged into the site to read it:

https://letter.spyoptionsactionablelevels.com/p/strategy-guide-the-basics

As readers know trading after a massive move in either direction is risky.

Trying to predict when trend will break is a fool’s game because the trend can be stronger than you ever realize.

Going with the trend is hard because it has already run so far (or dropped) and move may be close to over.

All you can do is pick your entries carefully and with proper position sizing. Trading out 1-3 DTE or further also helps soften the blow.

Yes it will decrease the amount of profit but will greatly help keep you in a trade long enough to see return.

For tomorrow, I am closely watching the key SPX levels of…

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