Thursday February 27 2025 SPY SPX ES Actionable Levels

$SPX rallies, then sells off but defends at key level. Is a reversal still in play for $SPY?

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In yesterday's letter, we wrote:

For tomorrow, we’re closely watching the key SPX levels of 5953, 5935, and 5981.

The best case for a reversal to play out for longs is that 5953/5935 defends now. Then, we can push up through 5967 and 5981 to feel better about longs, aiming to reclaim 5998 and 6011.

If we chop without making much of a move, it is likely above 5935 and below 5981/5967.

This is what happened. We never lost 5935 overnight, which established a strong support level, and we rallied right up to test 5981 before seeing a minor dip. After the open, the bullish momentum continued, pushing us all the way to the 6011 level before we experienced a sell-off that brought us down to 5935 again. Then it was between the chop zone for the remainder of the day and we were able to reclaim 5953 into the close.

See how well the levels work?

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Now that we had a rally, dip defense and consolidation day on high volume. Where do we go from here? Is a potential reversal still in play and we can put an end to the selling? Or are we just chopping until we take another leg lower? What level must reclaim to give us direction?

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 dip & defense of the 5935 level was critical for us to move higher and once we defended there we rallied back hard 30+ points. Always trust the levels.

Now we are sitting in AH right on the key 5978 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.

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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

Today was a wide range consolidation day, ending with a doji candle on high volume, signaling potential indecision in the market. We have NVDA earnings now after the bell, which could influence market sentiment moving forward.

Tomorrow will also be eventful, with at least six FOMC members speaking, alongside unemployment and GDP data, all coinciding with day two of the G20. It’s a busy week ahead, so let’s stay alert for any potential market reactions to these developments.

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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