Friday Dec 8 2023 SPY SPX ES Actionable Levels

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In yesterday’s letter, I wrote:

This is what happened. Overnight, we defended the 4547 level and rallied up to 4568 by the open. Then after some choppy action we rallied all the way through the levels above to a high of 4590.92 before the close.

See how well the levels work?

Now that we’ve moved back up near the top of this range, are we basing for a breakout? What critical levels must hold now to keep us from risking a deeper sell and can guide us higher?

More in the trade plan below.

The 0DTE $SPY 458 calls ran from a low of $17 to $100 = 488% gain.

I traded these from $57 to $78 at best sale for 37% gain. This was my second trade of the day called out in the chat. This was after a failed start at puts earlier in the session. More in the trade recap 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 phenomenal. When we defended the critical levels overnight and rallied hard into the open it was clear where we were headed, where we would have resistance and support on our move higher. I used them to get long into calls. Always trust the levels!

Now we are sitting in AH right under the 4581 key resistance 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.

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Trading Plan

Here is a current check of the daily:

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

Today we had a lower high and lower low compared to yesterday but we did end near the day’s high and get us back near the top of the current range.

Quick volume check:

Very comparable volume to yesterday and prior 5 sessions.

Tomorrow we have unemployment data prior to the open and consumer sentiment data after the open.

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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