Friday February 21 2025 SPY SPX ES Actionable Levels

$SPX loses critical support at the open and prints a red day. Did the bounce off today's lows give $SPY new life?

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SPY Options
February 20, 2025

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In yesterday's letter, we wrote:

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For tomorrow, we’re closely watching the key SPX levels of 6120, 6096, and 6140.

As long as we hold 6120, we want to look for long opportunities. Even a dip and defense at 6120 is a long opportunity. If we lose it, we could consider the short to 6108 and 6096. If 6096 defends, we flip long…

If we chop without making much of a move, it is likely above 6120/6096 and below 6140.”

This is what happened. We never got the 6140 SPX or 6159 /ES breakout overnight. Then, the market opened with a notable drop as we lost the key level of 6120, which I had indicated. This led us down to a low of 6084.59, just above the anticipated support at 6079. However, we managed to reclaim 6096, providing an opportunity for a recovery that brought us nearly back to the 6120 level by the close.

See how well the levels work?

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Now that we put finally put in a red day, where do we go from here? Was the bounce off support significant and where must we reclaim to feel confident we can continue higher?

More in the trade plan below.

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

The levels played out great, and although we didn't break out overnight at 6140 SPX or 6159 /ES, the loss of 6120 set the tone for the rest of the day. After reclaiming 6096, we saw a nice bounce, highlighting the importance of defending key levels. Always trust the levels.

Now we are sitting in AH right on the key 6111 support level. What does this mean and where do we go from here? Read below for our 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.

If you are enjoying this letter, consider sharing with a friend! We even have a referral program where you can earn free subscription time for referring others that sign up for a paid subscription.

Don’t miss the Topic Directory - Getting lots of questions that are answered in here.

There seems to be some confusion as to the premium subscription and the discord chat. If you are premium and you do not have access to the “Premium Members Only” channels including “members-only” please authenticate yourself in the “bot-request-premium” chat. Or send me a DM in the discord!

Also - if you missed it - join our chat during market hours for premium subscribers. We are now leveraging discord for this. Link is at the very bottom of premium content: Trading Plan section below.

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Trading Plan

Looking ahead, today was a decent sell-off on higher volume, but much of the dip was defended by the close.

Tomorrow, we have several important economic indicators to watch for, including manufacturing and services PMI right after the open, as well as home sales and consumer sentiment/inflation data. Additionally, an FOMC member speech is scheduled during the session, which could add further volatility to the market. Keep these factors in mind as we navigate through tomorrow's trading.

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, we’re closely watching the key SPX levels of…

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