Friday July 28 2023 SPY SPX ES Actionable Levels

$SPX volatility increases - massive range as rally to new 52 week highs then sells it all off.

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SPY Options
July 27, 2023

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In yesterday’s letter, I wrote:

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“I believe 4537 and the levels above will be the key to where we go from here. If we can hold or reclaim 4537 (or may not even get down there to test again) we can continue higher.

4566 is next level down and would like to bid 4559/4554 or 4544 if we can get down there. Last spot is 4537 and if we hold this and defend we can move back up.

Target is to break 4581. We would have to first reclaim 4573. We do this and break 4581 (and a tad bit more) and we have new 52 week highs and we can target 4586, 4594 as well.

On volume we can claim 4602 and 4609. Here is a major resistance that we may have a reaction to rest before we can move higher.

If we lose 4537 then we likely dip to lower 4500’s. ”

Apologize for the long recap but this is precisely what we had. We ran up overnight getting as high as the 4609 major resistance as mentioned above and then sold it all off. Briefly we dipped 4537 and reclaimed by close.

See how the levels tell the story? Lots of volatility, but now that we had this move, where do we go from here?

More in the trade plan below.

The 4DTE $SPY 456 puts ran from a low of $54 to $478 = 785% gain.

I traded these between $111 and $345 = 211% gain. Today was a hard day. I had the right call at the beginning and opened puts, but then I closed out of them as we started to rally again. Then traded calls for mixed results. Then got back into puts. It’s one of those I wish I could have back and had just kept my original put position! Oh well, hindsight 20/20! 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 last night were good (15 min chart). They helped get me short at the highs and then try the long on defense of levels. I also opened puts again once we broke those levels and didn’t keep them quite long enough in my opinion! Always trust the levels!

Now we are sitting in AH right on the 4539 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.

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