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Trading $SPY Today? Track the war over the $400 level with me! 2/27/23

Wondering how $SPY moved today? Let's go in-depth on how $SPY reacted to pre-market and intraday movements!

PRE MARKET+NEWS

Today was a very light news day, with nothing too impactful coming out over the weekend. This didn't matter, as $SPY gapped up from the weekend. 396.50 was the pre-market low, as we traded up to 400.26. A $4 pre-market move is INSANE, especially after no important news over the weekend. I knew today would be a wild trading day, as the anticipation over the $400 level would be fought hard today.


The first hours of the open

As we look at the image above, this picture shows the first hour of the N.Y.S.E. opening session. We opened beautifully right at 400, as traders made no effort to delay the anticipation of the 400 level. Traders sold this too around 399.30 as they quickly ran it back to 399.80 moments after, stopping out most shorts. Personally, this is where I got caught, as I took a short in anticipation of traders rejecting this key level. We ran down to 399.09 as I thought we were going to enter the 398 range. Traders swept me out of my trade as we ran back to 400 dramatically. Full transparency is key for me, as I was stopped from my trade. This was an important run, as now we get the real anticipation of 400.


We pushed right through the 400 level, as buyers showed no stopping. We blew through 400, right through the 400.30/400.50, and 400.80 levels on spy. Rising to around 401.30, traders realized we were oversold, as a sell reversal started. This was the sell-off I should've sold, as this sell-off was about to dramatically drop $SPY. We consolidated to around the 400.50 level, this is where the fireworks are about to happen, as the break of 400.50 was going to see us fly lower.




The SELL-OFF

Breaking 400.50 set $SPY into a huge midday sell-off, as we fell a whole $1. Going from 400.50 to 399.50 is a HUGE run, as sellers need to exit, we sold off into 398.50. Shorts finally covered, as the sell-off cooled down. Traders lightly bought $SPY, as we brought it back to around 399.60. I believe this was just shorts bringing it back up so they can get back in, as we continued the sell-off shortly after this quick run. Shorts brought us down to an intraday low of 398.08 reaching that pre-market gap. This gap filled, as traders realized, and buyers started to pour in as the gap was filled.




The final hours+after hours

After touching the pre-market gap (BLUE SQUARE ON RIGHT SIDE), traders start to consolidate. The last signs of buying pressure started at power hour(the last hour of the open), as we ran $SPY back to 399.22 key level traders are targeting. As you can see, a topping tail candle showing an indication of a reversal on the 15 min(the right side), leads to a slow sell-off. We sold off to 397.48, as that's where we closed at.


As you can see, $SPY recovered its losses after hours as we gapped right back up to the 399.22 level. Traders sold the gap up, as we closed the gap during after-hours, heading into a sell-off for tomorrow's opening session.


RECAP

The war over the 400 level on $SPY was a dramatic one, as the bulls and bears won at different times of the day. Sellers started strong, rejecting key levels of $SPY around 399.70. But, buyers regained control about 30 minutes into the open, as we broke through 400, into 401. This is where the sellers gave back $400, as we sold back off to around 397. As we consolidated for the rest of the day, the massive moves gave amazing opportunities to traders, but did you capitalize off of these moves?



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