Wednesday October 9 2024 SPY SPX ES Actionable Levels

$SPX bulls take us on a rally higher. How much more left in the tank for $SPY?

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In yesterday’s letter, I wrote:

For tomorrow, I am closely watching the key SPX level 5705.

If we can reclaim 5705, that would be a possible spot to get long on reclaim, to move towards 5719 and reclaim 5733. Then, 5748 and 5762…

This is what happened. We opened strong and decisively reclaimed 5705, which served as a critical pivot point for the day. Following this reclaim, we managed to push through all the targets outlined, except for the breakout level, ultimately closing right above the key level of 5748. The upward momentum was palpable, indicating bullish sentiment in the market.

See how well the levels work?

Now that we have successfully reclaimed 5705 and closed above 5748, what does this mean for the future? Are we setting ourselves up for a breakout, or is there potential for further consolidation?

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.

We reclaimed 5705 and all targets higher except the breakout, closing right above the 5748 key level. Always trust the levels.

Now we are sitting in AH right on the key 5740 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.

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Trading Plan

The day was marked by a big green candle, signaling a strong bullish move. However, volume was weaker than in prior sessions, suggesting that while the movement was significant, it may lack the conviction needed for sustained upward trends.

Tomorrow, we have the FOMC meeting minutes released, a 10-year bond auction, and at least six different FOMC members scheduled to speak throughout the day, all of which could inject volatility into the market.

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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