Understanding SPX Daily Support and Resistance – Learning The SPY ETF Hedge Strategy

Oct 31, 2020 | Become A Better Investor, SPY ETF Hedge Strategy (SPY)

SPY ETF - Learning Support and Resistance levels

On the members forums I was asked about the SPY ETF trade notes from Oct 28 2020 (members can review through this link) in which I commented where I would be watching the valuation levels for trading the next day. This article ties into prior articles on the same topic of Support and Resistance. Let’s review the question and then look at the SPX chart.

Investor SPY ETF Hedge Strategy Questions:

Hi Teddi,
This morning (Oct 28) in the Spy ETF update you said that you will look for opportunity to buy puts in the first 10 minutes if the open is above 3380. How did you choose the 3380 level? Does it have to do with where it falls between support and resistance? I think I understand why you say if it opens lower like near 3360, you will look for call buying opportunities but the 3380 number is getting me.

Strategy Article for Members

This strategy article is for members. By understanding how to plot daily support and resistance levels in the SPX, investors can profitably trade the SPY ETF more consistently for profits.

While I trade the SPY ETF intraday, it is not necessary for investors to focus on a lot of trading intraday if that is not their interest. This type of intraday trading is not for every investor. Instead, by understanding support and resistance levels, trades can be placed from once to just a few times daily for profiting from market movements.

This strategy article is 2100 words in length and will require 6 pages if printed.