Wednesday January 21 2026 SPY SPX ES Actionable Levels

$SPX gets rocked on tariff news and defends and rejects at exactly key levels. Where must $SPY bounce tomorrow?

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In Friday’s letter, we wrote:

However, we should stay alert for any news coming from the White House over the weekend…For Tuesday, we’re closely watching the key SPX levels of 6907, 6921, 6939 and 6953. The most optimistic path is that 6939 holds in futures over the weekend and into Tuesday’s open, keeping our bias firmly to the upside.

If we lose 6921, a short to 6907 can be attempted…A decisive break below 6907 would invalidate the bullish thesis and call for definite short exposure into 6891 and 6871. Failure to hold 6871 would accelerate selling toward 6859 and 6831.

This is what happened. The futures market reacted sharply to the potential implications of the White House Tariff news, leading us to fall below all key supports. Our final level of defense, which was identified on Friday at 6809 SPX or 6846.75 on /ES in futures, ultimately held-EXACTLY, allowing for a 40-point bounce off the lows by the opening bell. Then, we identified a potential sustained move higher if we could move north of 6859 and hold above it. But the market faced strong resistance at high of day 6871.17, EXACTLY at our 6871 SPX level - the next significant level above 6859. This rejection led to a continued slide, culminating in a low of 6789.05. $SPY ( ▼ 2.04% )  $SPX ( ▼ 2.06% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we head into tomorrow, what are the key levels to watch? Where must we reclaim now and where must we hold if we drop further?

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 loss of 6921 & 6907 overnight led to a drop to our final 6809 support EXACTLY before defending. The inability to hold 6859 and rejection at exactly 6871 (high of day 6871.17) led to continued slide to 6789-80+ points lower. Always trust the levels.

Now we are sitting in AH right on the key 6800 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.

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Trading Plan

Today was a turbulent day for the markets, as we experienced a significant 2% decline on high volume, primarily driven by geopolitical concerns and news from the White House regarding tariffs.

As we look ahead to tomorrow, the potential for continued volatility exists, especially with a key Trump speech scheduled just before the opening bell and pending home sales data to be released post-open. Tariff news is becoming increasingly influential, and any developments will likely sway market sentiment dramatically.

We are receiving some great questions from beginners. This is helping us develop guides for this group as well as the course. More to come but we’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, we’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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