 Welcome back with us folks tonight. I want to show you how and why We plan the pullback on spy last Friday. We called it in the watchlist and we were basically waiting for it to happen On on Friday This is happening Friday pre-marking. I'll show you the strategy behind all this so you can you can learn from it This is the pre-market activity Before the open and look that we are Slowly inching higher higher as the day is as we're getting closer to the bow And you've probably watched in previous videos that This is pre-market resistance. If we ever break through usually it becomes bullish What I don't like about spy and even lately when we have well on Friday We had G7 European Union and NATO summits all on one day it was bound to have a little bit of volatility and I was it was to expect that we could have some sort of pullback and not scream right off bat to to Break the the pre pre-market resistance. So usually when we we get this kind of Behavior pre-market if we break through it becomes very bullish, but on A pre-market high open usually we see some sort of pullback and then we have a direction and let's Let's see how I was looking at it. I wasn't so sure about it because because of what what I just mentioned regarding the The volatility that was possible possible But it did indicate something that was looking Amazingly bullish. See this what I'm talking about pre-market resistance. We get down to a certain level. So I call this a little pullback Then we reject the resistance that we had to see this this was this it used to be support now It becomes resistance. Oh, we get a higher low Then we break we break through we look like we were going to get bullish But straight off that sell-off started I Was under the impression that it would have happened right, you know Closer to here, but it gave a fake signal a fake fake ball signal Which is okay because I was not looking to play the upside I was Maybe looking for something to bounce on a lower point Which we called in the watch list and this is what I want to show you how do I come up with that one? Let's zoom out a little bit Look at the previous day Look at how it behaved So we had buyers come up to a certain point Rejecting a certain point, right? So sellers took over and then same line And then what happened? Oh, we broke through Right, and then that line was used as support and then we moved on Let me put a line a real line on this one so you can guys can see it I'll put drawings and there you go. See this line now this line was previous day resistance and It became support very close after before the bell. So you can see this is some sort of an interest line a line to watch is It always going to be something to watch Well, let's move out. Let's move even Further out so you guys can all see what I was looking at. Oh Let's get this a little less busy Check this out you guys have seen this chart because you've watched it a few times the spy chart, you know this long Crawl up we get to a point of resistance Pull back and now you guys see this line is probably lines of resistance that we have But this is what not what I was looking at. I'm looking at some sort of support when we see any big Pullback, you know a pullback like this pullback like this This pullback everything here that you see has volume and we should keep an eye on all of these pullbacks now Make it a little cleaner for you guys, but this one is a pullback I was interested in because it's very close to where we were training and Let me put a line on this so you guys can all see what I'm looking at. So I'll put a line see Very close to that See here so it becomes support. This is where it bounces and I'm sure you guys can all see it and I'll add a few things so you guys can know see how it behaves once we put a line in the chart Sometimes we see more things see how bounces on this line. Here's a higher low. It's a little higher But it's very close to that line This one it rejected the line and ended up closing lower here was a lot of Trouble and hit the line, you know as we went below Found some support went up Rejected it and went back down now. You all see this is 4485 ish, right? So you can probably see that it's very similar to the line that we had and Let's say the five-minute chart that we call Because this was top there top there And the idea was to see a pullback to that line It used to be support it found buyers at one point, right? It became support and at this level Previous day it was resistance. So let's see How it behaved so basically when it came to that It was flushing with a very large You know basically when you're when you're watching this you have no interest in going along because you look Oh, you're looking at the whole thing saying. Oh, man. This is the end of the world We're we're doing we're going down because you know we were 452 here now 448 We have lost four dollars in a few candles. It looks Extremely bearish. However, you know, it's going to bounce somewhere and that somewhere is where you planned You plan on getting in You know what we overshot a little bit on on this week and then it You know this higher low was right on the line and it became The bullish move that we wanted so on that line We alerted what because we were sitting on that on on the on the plan that we had plan that we sit before the market opened and The plan was what if we get to our support line that we tested Day before was resistance now. I should test as support And we've shown you many times pull back to the previous support or resistance is A place of interest you all saw that on the daily it was an old place where We found buyers on that line So basically the plan is this when we get to the line It bounces and then we move to the upside. We decided to take 450 calls For a Monday. Why not the same day? Well various reasons We if we start flushing Even further while, you know, we were losing value by a significant margin and We do not have a lot of time to catch up if we wanted to do something a lot more Well safer than to take something out of the money We could have been taking something in the money, you know in the 448 or 447 even calls On the same day expiry, however, we decided to take Monday for fifties and You know, you all saw that in that 200 EMA rejected and then we went through and I decided to get out as we were hitting the pre-market resistance, which was here a little Before it hit the top, but I was, you know, happy with the move Came down moved up flushed a lot of people We've seen that happen many times on Fridays But the exit was called there, which was previous the the pre-market resistance, which is, you know, happy enough We could have aimed for something like this level which ended up being right at the end of the day but the idea is to be consistent with your play plan was for the recovery between the plan and Wherever we had resistance and that I believed it was in the pre-market. So basically what I was Attempting to do here is to show you that sometimes when you have a plan and a pullback plan was, you know when you look at all these red candles sometimes a lot of people are extremely Overwhelmed about the fact that it becomes very bearish so emotions take away and they're like oh no men That's tanking too much But in fact, no you should smile at this because it's inching towards your plan your plan is to hit that Level that you already you have already planned and then when once you get there you move to the upside If we had taken out of the money for 50 for same day, obviously, they would have paid a lot more the idea is not to Have a percentage contest here. The idea is to be consistent. So we ended up on buying for 50s for Monday And selling at this level for a respectable 49% win on Something that lasted just only a few hours. So I hope you guys are learning from this and I will Stay tuned because I'll do something that is very similar on Netflix that we also played stick around