SPY Channel Analysis with Levels (Week in Review Part III)
POST FOMC MINUTES: 0DTE Credit Spreads, Long Trades, and LONG POSITIONS
We must start with the TRENDLINE BREAKOUT that has been on our charts for weeks, and with the FOMC news behind us, the question for Thursday Premarket is do we reverse and drop during the Opening Range (OR) as we have seen so many times post FOMC.
THURS: We got our answer pretty quick on THURSDAY with a GAP OPEN and immediate move over the WHITE SUPPLY Zone with the 1st ORANGE-BUY TARGET being hit in the Opening Range. Our AM Session included an Opening Range Breakout (ORB), so we held our LONG $ES_F and sold 0DTE $SPX Put Credit Spreads (PCS) under 3950 for Thursday...both of them printed. Our $SPY Traders still had 405.02 as Targets on their Daily charts from previous levels, and that level was hit immediately following a breach of the GRAY Line (R2-404.60). From there, we looked for a move towards the 2nd ORANGE Line (TGT 2) but SPY just couldn't quite get there. Any long positions cold have used the Daily 405.02 or the Intraday R2 (404.60) as a STOP EXIT for huge gains. SPY pushed almost 9pts on Thursday.
FRI: In looking closer to the INTRADAY LEVELS, you need to recognize that FRIDAY's RED SELL TRIGGER was almost exactly where the previous day's BUY TARGET #2 was located. How can a SPY Level go from an extreme upside target to an actual SELL TRIGGER the following day? We cannot give the WHY, but rather just use the levels from our algo and trade what the day gives us. With the GAP OPEN, we cleared above the OVER/UNDER (not shown) and the GREEN BUY TRIGGER (408.57) in the first candle. From there, SPY hit the WHITE SUPPLY Zone early, and our upside targets were 411.02 (white dots from Daily chart) and 1st ORANGE TGT Line at 413. We anticipated the LOWS for the DAY (LoD) were in, so many held long $ES_F and others sold 0DTE $SPX PCS at 4050 and ultimately 4085. It was not until midway through our PM Session that SPY took out TARGET 1 (413) and then set it's sights on the Daily 415.15 (white dotted line) and Intraday R2 at 415.35 --which is EXACTLY where SPY CLOSED!!!
What a late day squeeze...this was discussed and expected from the start of Power Hour!
We must start with the TRENDLINE BREAKOUT that has been on our charts for weeks, and with the FOMC news behind us, the question for Thursday Premarket is do we reverse and drop during the Opening Range (OR) as we have seen so many times post FOMC.
THURS: We got our answer pretty quick on THURSDAY with a GAP OPEN and immediate move over the WHITE SUPPLY Zone with the 1st ORANGE-BUY TARGET being hit in the Opening Range. Our AM Session included an Opening Range Breakout (ORB), so we held our LONG $ES_F and sold 0DTE $SPX Put Credit Spreads (PCS) under 3950 for Thursday...both of them printed. Our $SPY Traders still had 405.02 as Targets on their Daily charts from previous levels, and that level was hit immediately following a breach of the GRAY Line (R2-404.60). From there, we looked for a move towards the 2nd ORANGE Line (TGT 2) but SPY just couldn't quite get there. Any long positions cold have used the Daily 405.02 or the Intraday R2 (404.60) as a STOP EXIT for huge gains. SPY pushed almost 9pts on Thursday.
FRI: In looking closer to the INTRADAY LEVELS, you need to recognize that FRIDAY's RED SELL TRIGGER was almost exactly where the previous day's BUY TARGET #2 was located. How can a SPY Level go from an extreme upside target to an actual SELL TRIGGER the following day? We cannot give the WHY, but rather just use the levels from our algo and trade what the day gives us. With the GAP OPEN, we cleared above the OVER/UNDER (not shown) and the GREEN BUY TRIGGER (408.57) in the first candle. From there, SPY hit the WHITE SUPPLY Zone early, and our upside targets were 411.02 (white dots from Daily chart) and 1st ORANGE TGT Line at 413. We anticipated the LOWS for the DAY (LoD) were in, so many held long $ES_F and others sold 0DTE $SPX PCS at 4050 and ultimately 4085. It was not until midway through our PM Session that SPY took out TARGET 1 (413) and then set it's sights on the Daily 415.15 (white dotted line) and Intraday R2 at 415.35 --which is EXACTLY where SPY CLOSED!!!
What a late day squeeze...this was discussed and expected from the start of Power Hour!
Vet
