Thursday December 5 2024 SPY SPX ES Actionable Levels

$SPX rallies to fresh all time highs. How much further can $SPY run?

In yesterday's letter, we wrote:

For tomorrow, I am closely watching the key SPX levels of 6046, 6029, and 6015.

I want to long a dip and defense at 6046 or 6029. Then, we can target 6052 and 6076 first, with 6088…as additional targets.

This is what happened. The levels played out fantastic today as we didn’t even need to retest 6046, which was an extremely bullish signal. Instead, we took out the 6052 level overnight, presenting a great opportunity to get long. The rally continued, pushing all the way to the 6088 level, eventually reaching a high of 6089.84. It’s remarkable how these levels guided our trades and expectations.

See how well the levels work?

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Now that we have hit another fresh all-time high, what does this mean for the short-term? With the market showing such strength, we must keep a close eye on any potential support levels to defend and what targets may emerge next.

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 out well today as we didn’t get the dip & defense but if you missed the original long entry before the open, during the regular session we had a clear resistance at the 6076 level and fought with it for some time before dipping and then breaking out, that triggered a rally to 6089.84, just above the 6088 level. Always trust the levels.

Now we are sitting in AH right on the key 6077 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 saw a fantastic rally, marked by higher volume, affirming the bullish sentiment in the market.

Tomorrow, we will have unemployment data released prior to the open, and it will be crucial to see how the market reacts to this information. Stay alert for any volatility that may arise from the report.

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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