News Spikes: Check structure to avoid chasing wicksS&P 500SP_DLY:SPXTrade_Logic_AIWhen high-impact news is released, the initial price spike is frequently driven by algorithm reactions and sudden liquidity seeking rather than a definitive shift in the underlying market trend. This immediate, erratic volatility often retraces once the initial surge of market orders is absorbed. The true direction of an asset usually reveals itself only after the initial turbulence subsides and the market establishes a clear structural footprint. Understanding that the first reaction to news is rarely the final result allows you to analyze charts objectively instead of reacting emotionally to sudden speed. To navigate this environment, observe the established market structure and predefined areas of interest before evaluating any sudden moves. On the SPX 4-hour chart, the current price is 7701, with a 14-period Average True Range of 44, which represents a 0.57 percent average movement for a single 4-hour candle. Rather than tracking the immediate flashing price during a release, observe the predefined zone of interest between 7679 and 7732. This area represents a balance boundary holding 16 percent of the volume profile and is confirmed by previous chart extremes. Evaluating potential action from this established zone provides a grounded framework, as opposed to reacting randomly to market-order spikes. Check the market's true intent by waiting for the 4-hour candle to close relative to these calculated levels. If a news-driven spike pushes the price into the 7679 to 7732 zone, verify whether the structure holds or if it breaches the scenario invalidation level at 7695, which is placed beyond the far boundary of the zone. Once a structural reaction is confirmed by the candle close, you can measure the potential move against logical technical objectives. The first target is 7845, supported by the extreme of the 260-bar window, representing a 2.5 ATR or 1.4 percent move from the zone. The second target is 8026, supported by the 261.8 percent projection, which represents a 6.7 ATR or 3.8 percent move from the zone. A common mistake is chasing the very first price movement immediately after a news release. Entering a position while the candle is still forming often results in buying at the absolute high or selling at the low of a sudden, temporary wick. This forces an entry far outside the logical zone of interest, completely invalidating the structural framework and leaving the position highly vulnerable to the inevitable retracement that follows the initial shock. For your risk-aware practice step, map out your zones of interest, targets, and invalidation levels before the market experiences elevated volatility. When news hits, step back and wait for the initial reaction to complete and the relevant time-frame candle to close. Only consider evaluating the chart further if the price confirms support within your planned structural zone. This patience allows you to maintain strict risk parameters, such as executing a plan that relies on the 7695 invalidation level to maintain a calculated 1 to 3.0 risk-to-reward ratio to the first target.