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- Monday December 16 2024 SPY SPX ES Actionable Levels
Monday December 16 2024 SPY SPX ES Actionable Levels
$SPX rallies overnight, drops and chops all to go nowhere. Where must $SPY hold now?
In yesterday’s letter, we wrote:
For tomorrow, I am closely watching the key SPX levels of 6056, 6046, and 6067.
If we range again, it is likely above 6046 and below 6067/6078.”
This is what happened. The trading session was marked by significant chop but the key levels I mentioned were crucial in guiding the action. Initially, we defended the 6067 level well, which allowed us to rally up to a high of 6078.58, right at the 6078 level. However, we then dipped and briefly lost the 6046 support before closing the day unchanged at 6051.
See how well the levels work?
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Now that we continued this massive rangebound chop only to end flat for the day, where do we head next week? Where must we reclaim to spark the next breakout? What key level must hold to avoid a major selloff?
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 great. The run at the open to the key 6078 target based on the premarket defense was good, but when we rejected caution was warranted. Then when we eventually couldn’t hold 6046 support longs were off the table for me. Always trust the levels.
Now we are sitting in AH right on the key 6044 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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Trading Plan
It was noteworthy that the market experienced a choppy trading session characterized by increased volatility. The volume was significantly higher than we've seen in recent weeks, the highest since mid-November, which signals a potential shift in market dynamics.
Looking ahead to Monday, we have PMI data scheduled for the morning and not much else on the calendar.
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 Monday, I am closely watching the key SPX levels of…
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