Friday May 12 2023 SPY SPX ES Actionable Levels

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In yesterday’s letter, I wrote:

“For tomorrow, I don’t believe we would see real selling until we break 4119…

To break 4119 we would need to break 4134 & 4129.

4119 is the significant downtrend line from the Aug ‘22 and Jan ‘23 highs. We just can’t seem to get very far away from this line!”

This is really my best summary of today’s movement. We did fail 4134 overnight and failed 4129 in the AM. This brought us down to test 4119 which we also failed. We reclaimed this level but we continued to test it and reclaim. By end of day we chopped around 4129 and finally made a push higher.

Bulls defended where they had to yet again. Yet we are still firmly in the range we have been in for 1+ months. Where will we go from here?

More in the trade plan below.

The 0DTE $SPX 4125 calls ran from afternoon low of $175 to $972 = 455% gain.

I traded these, and caught a decent chunk of the move from $390 to $810 = 108% gain. This was my final trade of the day. I had a few other trades but this was by far the best, least choppy movement. Earlier I had some puts for the drop after the open and then some calls after defense of 4107. More in the trade recap below.

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

Levels from last night were great (15 min chart). The rogue spike down at 1:45 PM ET made it very hard to hold onto calls. I got stopped out there and reopened a bit later. Unfortunately there was a lot of chop and slow movement with some sudden rogue movement as mentioned. Always trust the levels!

Now we are sitting in AH sitting right on the 4130 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 tomorrow’s 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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