Over the past few weeks, the stock market has been bouncing between critical support and resistance levels unable to find a direction.

The S&P 500 ETF (SPY) has flirted with a major support level, the Death Line, at $282 twice… as well as testing resistance at $294 multiple times… 

With the market trading between a wide range, it makes for a difficult market for many traders. 

For example, heading into the Fed’s Jackson Hole Economic Symposium yesterday… 

… the market was catching a bounce and moving towards the resistance, as traders were looking for dovish comments from Federal Reserve Chair Jerome Powell, which could’ve sparked a rally.

When the Fed speaks, the market listens… but in a rare turn of events, the Fed was not what mattered Friday… as Trump jumped in with a tweet escalating the never-ending back and forth of the trade war with China…

S&P 500 ETF (SPY) went from testing resistance on the upper end of the range and closed near the Death Line.

How can you possibly make money in this market when there is no clear direction to trade with?

I am going to share what you need to know about these important support and resistance levels… as well as a clear and simple way to make money in this market.

Current Key Market Levels – Support and Resistance

The market is currently caught in a range, stuck between critical support and resistance levels. Let me quickly explain why these levels exist.

Support and Resistance

Support is an area where demand is higher than supply. Therefore supporting the stock price at that level.

Resistance is an area where supply is higher than demand. Therefore creating a ceiling for the stock price.

Stock prices tend to pause and often reverse at these levels due to supply and demand imbalances.

Often times, when a stock price breaks one of these key levels, it then becomes the opposite.

What I mean by that is when a price breaks above a resistance level, it tends to become a support level as the buyers have won out and then created higher demand in that area to keep the stock above where they bought it.

Okay, that’s the basic theory…

… but how do you spot key support and resistance levels?

When you look at a chart, you will notice places where a price gets to, but then gets stuck there.

Every time a stock gets to that price, it can’t quite make a move past.

These are the areas of support and resistance. Support being a price range where the stock has a tough time breaking below and resistance an area the stock can’t get above.

Due to supply and demand imbalances at these levels… support and resistance can move a market too – by stalling it and many times creating a reversal or bounce off the area.

When there is a lot of confusion in the market, these levels can keep the market in a range, as buyers build positions where they feel the market is undervalued and sellers where they feel it gets too high.

Now let’s take a look at the current market’s support and resistance levels that are keeping this market in a range.

As you can see, the market is stuck in between support at the Death Line, $282, and the resistance level at $294… these levels have been tested many times… and until we see a clear break below the Death Line or a clear break above the resistance at $294…

… the market will probably stay in between that range.

But these levels are tricky as they are inexact…

You have to be very careful of false breakouts and breakdowns.

This is when the price breaks support or resistance getting a lot of traders in and out thinking the market has found a direction, only to come right back and go the other way…

So how do you handle this situation?

Trade options.

Options are simple… and the direction is black and white

While in stocks there are a lot of grey areas…

Options, on the other hand, are black and white…

You see, with options everything has to be reported, so you get to see the actual demand for specific options contracts…

… giving you a clear picture of where the underlying stock could go and a better understanding of what it means to your trades.

You want a way to keep from being a sucker in a fake out break out?

The 7 million dollar man, Kyle Dennis, has just come out with a new trading strategy that allows you to “spy” on the insiders of the industry… you know, the guys and gals that KNOW what’s going to happen… BEFORE it happens.

His new strategy has shown an uncanny ability to get on the right side of big news BEFORE the news even comes out… WITHOUT even knowing what the news is

It all has to do with unusual options activity. Kyle’s proprietary technology lets you know exactly what the insiders are doing… and if you know anything about them…

… these insiders are rarely wrong… and Kyle’s newly-developed proprietary system takes advantage of this knowledge.

And yes, this is totally LEGAL as there is no actual insider information changing hands. He is using his proprietary scanners to find Unusual Options Activity in the market…

We’ve seen the potential to make up to 1,252% returns…on a single trade.

If you want to play in the grey areas of the market… good luck… but if you want to simplify your trading, options may be the answer.

Check out Kyle’s new strategy and get on the same side as the INSIDERS.