Friday January 31 2025 SPY SPX ES Actionable Levels

$SPX rides volatility to highs of range. Can $SPY bust through?

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In yesterday’s letter, we wrote:

For tomorrow, we’re watching the key SPX levels of 6042, 6028, and 6013.

Even with a down day and sideways consolidation, today was constructive in filling out the range. As long as we hold 6013/5997, we want to look skyward. We could long a defense at 6013, a dip and defense at 6020/6028, or just hold the key 6042 level.

In these scenarios, we target 6058 and 6071 first, with 6084…

This is what happened. After hours yesterday, we defended 6028 and launched to 6071 before dipping back down to 6042. We then traded sideways, hitting a low of 6027.46—right at the 6028 level again—before rallying all the way up to a high of 6086. This move brought us right to the 6084 target that we mentioned yesterday.

See how well the levels work?

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The ability to defend critical support levels has been key in maintaining this upward momentum.

Now, looking ahead, we have to consider the implications of today’s price action. The market showed strong resilience in bouncing back to the highs after testing those support levels. Can we keep the momentum going or will we be brought right back down to the lows of the range again?

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 reclaim and defense of 6028-twice proved out to be great long opportunities. It was a decent & volatile range. Always trust the levels.

Now we are sitting in AH right on the key 6065 support 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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Don’t miss the Topic Directory - Getting lots of questions that are answered in here.

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Trading Plan

Today was marked by a great green candle on similar volume, indicating strength.

Moving forward tomorrow, we have PCE data and an FOMC member speaking prior to the open, along with PMI data right after the opening bell. These events could provide additional volatility, so it's essential to stay vigilant and adjust our strategies accordingly.

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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