$SPY Key Levels, Analysis, & Targets

SPY Key Levels, Analysis, & Targets

So today was just FUN…. I was expecting a rally today and we sure got a face ripper…. No surprises in the fed meeting so the market had a party.

How did I play today? So we opened at 417 so I chose that as my call strike. I added a VWAP to that options chart which gave me a starting price of 3.28, which I cut in half giving me 1.64 so that is what I set my buy order to. It filled around 10:30 and I immediately set my sell order for a 50% profit and one hour later around 11:30 I closed that trade for a 50% profit (1.64——>2.46) X10 contracts. It was a small win (820), but I’m definitely sticking to small trades for now. Yes, the market rallied hard after that and I could have made a lot more, but I decided not to play the fed meeting. And profit is profit. I’m managing to hit that 50% quite regularly using this strategy so I’d rather be consistent then be upset that I didn’t make more.

Now we are at a double resistance level at 429 (red arrow)… and ALSO right at the 200MA on the 30min chart which you can see has been quite a strong resistance, and also the 35EMA on the 4hr chart. If it does break above I can see perhaps a run up to 435-440 (right shoulder of H&S?) and if it gets rejected then a retest of 404 or even a possible attempt to fill that gap below…

I’m taking this market 1 day at a time basically just scalping and day trading on the top contract which, again, I don’t really recommend if you’re still learning… if you’re still learning it’s better to wait for a confirmation of direction or trading much further out to improve your chances…

There you have it… my entire thought process LOL… Hope this makes sense…. I don’t know, the more I stare into this chart the more I’m thinking puts tomorrow…. But let’s see how this opens, there is a little bit of room to the upside so I don’t want to be hasty….

Let me know your thoughts… I truly enjoyed playing the bullish side MTW, but I think It’s time to get back in puts…