Friday Dec 15 2023 SPY SPX ES Actionable Levels

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In yesterday’s letter, I wrote:

We had a bit of both of these today. Early in the session we defended 4710 and made the push up to 4738 (high of day) just above the 4735 level, then it was all about chop/consolidation between 4692 (low of 4694) and 4724.

See how well the levels work?

After first consolidation in many days, what are the critical must-hold levels to keep this rally alive and what are next targets above?

More in the trade plan below.

Below, we’ll cover the actionable levels, how I played them today and what they mean for the next session.

Levels from the prior letter were great. It was chop city, but still the levels gave clear targets for acceptance and support. Always trust the levels!

Now we are sitting in AH right on the 4710 key support level. What does this all mean and where do we go from here? Read below for my trade plan which includes actionable support & resistance levels, outlook for the next session and today’s trade recap.

Learn the system to make 1-3 low risk, high reward trades per day using SPY/SPX options.

Trading Plan

Here is a current check of the daily:

This includes all the way back to 3/30 & all overnight action.

Today we printed a higher high and higher low due to the giant move yesterday. Yesterday I indicated we needed to let price find its way and we are in that process now.

Quick volume check:

Higher volume than the breakout session yesterday as we digest the recent move.

Tomorrow we have data in the AM including PMI.

As readers know trading after a massive move in either direction is risky.

Trying to predict when trend will break is a fool’s game because the trend can be stronger than you ever realize.

Going with the trend is hard because it has already run so far (or dropped) and move may be close to over.

All you can do is pick your entries carefully and with proper position sizing. Trading out 1-3 DTE or further also helps soften the blow.

Yes it will decrease the amount of profit but will greatly help keep you in a trade long enough to see return.

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