Friday May 5 2023 SPY SPX ES Actionable Levels

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In yesterday’s letter, I wrote:

“This move was significant. In fact, in AH it became a lot more significant. Not only are we on the bottom of the range since 3/31 but now we have busted beneath it a bit - breaking the lows from 4/6…

If buyers want to defend again we cannot lose 4069 or if it is lost it has to quickly be reclaimed. If that doesn’t happen we should see 4056, 4042 ”

This is the direction the market chose. If you remember, I have said for the past couple days that it appears the market is rolling over. Today looked like further confirmation of that.

Of course anything can happen, but there are number of signs that support this. More in the trade plan including an update on volume!

After an overnight rally after the big sell into the close yesterday and AH, we sold it all off in the early morning and into the open.

More in the trade plan below.

The 0DTE $SPX 4050 put ran from an AM low of $400 to $1400 per contract. - 250% gain.

I traded these, and while I did not get them for $680 and sell for $1250 = 84%. This was my first trade of the day. I took several other put trades and all were good and profitable except the last one. 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 good (15 min chart). They allowed me to get some nice put scalps off levels. I wish I had opened calls at the bottom, but I had already scalped my day at that point. Always trust the levels!

Now we are sitting in AH sitting right on the 4058 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.

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