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- Monday December 23 2024 SPY SPX ES Actionable Levels
Monday December 23 2024 SPY SPX ES Actionable Levels
$SPX shakes out both sides and rallies hard. $SPY set to soar?
In yesterday’s letter, we wrote:
For tomorrow, I am closely watching the key SPX levels of 5863, 5848, and 5881.
If we lose 5848, I want to be short for a move to 5831…
If we have a strong reaction at 5863 or don’t even retest, we can try the long for a move to 5881, targeting 5898. If we get a push through there, we can target 5916, 5937, and even 5958 or higher on a squeeze.”
This is what happened. The market opened and we initially dipped from 5848 down to a low of 5832. This closely approached the 5831 level I had highlighted. After defending that level, we chopped around briefly before decisively reclaiming 5848. This key entry led to a monster rally that rocketed us all the way up to a high of 5982.06, surpassing all the targets I had set, including 5973.
See how well the levels work?
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Now that we’ve had this significant movement, what do we look for moving forward? Are there still targets above that we should keep in mind?
More in the trade plan below.
I traded long the 5848 reclaim after the data release at 10 AM ET, and it was a successful trade on entry that led to monster rally to 5982. The momentum was powerful, and I was able to capitalize on the upward move effectively.
Below, we’ll cover the actionable levels, how I played them today and what they mean for the next session.
Levels were phenomenal. As I said in the chat we were at a key inflection that if we didn’t reclaim 48 and higher it was a short, but if we did reclaim it could be a massive long entry. That’s what we saw. This move doesn’t even count the overnight short or defense right at the key level and subsequent rally prior to the open. Always trust the levels.
Now we are sitting in AH right on the key 5926 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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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.
Order Now - Mastering Emotions lesson launched and new lessons soon.
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Trading Plan
Today was massive for both the defense at lower levels and the subsequent rally; however, it did come on slightly weaker volume than the prior two sessions. This could indicate a need for caution moving forward.
As we look ahead to Monday, the calendar is lighter with only some consumer confidence data scheduled in the morning. It’s essential to keep an eye on developments in Washington D.C. and any overseas events that may impact market sentiment. The volatility we’ve experienced can often lead to further movement, so stay alert!
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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