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- Thursday January 16 2025 SPY SPX ES Actionable Levels
Thursday January 16 2025 SPY SPX ES Actionable Levels
$SPX runs on massive 2% green day. Can $SPY continue the rally?
In yesterday’s letter, we wrote:
For tomorrow, we’re closely watching the key SPX levels of 5851, 5817, and 5795.
The levels of 5851, 5835, and 5817, are areas to long on a dip and defense, aiming for a continued move higher. If we hold, targets include 5864 and 5875 first, with 5889, 5905, and 5921 on deck. A stretch target of 5936 is possible on volume.”
This is what happened. The levels were incredible. We held the critical support levels overnight, and then launched post-CPI after the open to 5950.75, a mere .25 cents to the final 5851 upside resistance level posted yesterday before resetting for another push later in the day.
See how well the levels work?
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Now that we’ve seen such a strong rally, where do we go from here? Are there further targets to the upside, or do we need to be cautious of potential pullbacks?
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 as we didn’t need to retest lower, got the push through 5864 early and it was off to the races up through 5936 and to the final 5951 resistance posted yesterday. Always trust the levels.
Now we are sitting in AH right underneath the key 5947 resistance 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
Today closed with a massive green candle, albeit on lower volume. This indicates strong bullish sentiment, but we need to be cautious about the volume as it can signal potential exhaustion.
For tomorrow, we have retail sales and unemployment data slated before the open, along with at least one FOMC member speaking during the session. These events could create volatility, so it’s crucial to stay sharp.
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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