SPY Channel Analysis with Levels (Week in Review Part II)
WED Analysis - the LOOK & FAIL followed by the BREAKOUT
WED was a huge day, with the looming FOMC Minutes Release at the 1400 hour mark. We have broken the week down to provide insight into HOW & WHY we trade $SPY - both our ENTRIES & EXITS.
WED- RANGE Morning between the WHITE LEVELS (SUPPLY & DEMAND ZONES)
Textbook LOOK & FAIL from 10:15-11:15 and the ONLY REASON we did not initiate a LONG POSITION (different from a Long Trade) was the Downward sloping Trendline that we drew weeks ago.
This Trendline never gave us a Breakout Signal w/ a close over it and the upper WHITE Line-SUPPLY ZONE was too strong of Resistance when coupled with the Trendline.
SPY Returns back to our Intraday OVER/UNDER Line (not depicted on the chart). and flirts back with the RED SELL TRIGGER. There was no close under the RED TRIGGER, so our Thesis was still Long Trades (and possibly LONG POSITIONS) if we broke back up through the WHITE SUPPLY ZONE. Following the FOMC Minutes release at 1400, $SPY finally broke above the TRENDLINE & SUPPLY ZONE by 1420 hours (2:20pm) and we adjusted and closed some longer dated Put Debit Spreads (PDS). WED PM Session gave us an upside Target and we achieved a decent return longing some calls up into the ORANGE TGT1 Level for an INTRADAY / 0dte trade. $SPY/$SPX/$ES_F all closed above their prospective WHITE SUPPLY Zones, so we held some long ES Contracts overnight.
PSA- TV would not allow us to publish a 5min Intraday Chart outlining the specific levels & times, so we used a zoomed in 15min Chart...
PART III is next, covering Thurs & Friday
WED was a huge day, with the looming FOMC Minutes Release at the 1400 hour mark. We have broken the week down to provide insight into HOW & WHY we trade $SPY - both our ENTRIES & EXITS.
WED- RANGE Morning between the WHITE LEVELS (SUPPLY & DEMAND ZONES)
Textbook LOOK & FAIL from 10:15-11:15 and the ONLY REASON we did not initiate a LONG POSITION (different from a Long Trade) was the Downward sloping Trendline that we drew weeks ago.
This Trendline never gave us a Breakout Signal w/ a close over it and the upper WHITE Line-SUPPLY ZONE was too strong of Resistance when coupled with the Trendline.
SPY Returns back to our Intraday OVER/UNDER Line (not depicted on the chart). and flirts back with the RED SELL TRIGGER. There was no close under the RED TRIGGER, so our Thesis was still Long Trades (and possibly LONG POSITIONS) if we broke back up through the WHITE SUPPLY ZONE. Following the FOMC Minutes release at 1400, $SPY finally broke above the TRENDLINE & SUPPLY ZONE by 1420 hours (2:20pm) and we adjusted and closed some longer dated Put Debit Spreads (PDS). WED PM Session gave us an upside Target and we achieved a decent return longing some calls up into the ORANGE TGT1 Level for an INTRADAY / 0dte trade. $SPY/$SPX/$ES_F all closed above their prospective WHITE SUPPLY Zones, so we held some long ES Contracts overnight.
PSA- TV would not allow us to publish a 5min Intraday Chart outlining the specific levels & times, so we used a zoomed in 15min Chart...
PART III is next, covering Thurs & Friday
Vet
