Friday Nov 10 2023 SPY SPX ES Actionable Levels

$SPX has first real red day in 8 sessions. How much deeper could $SPY go?

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SPY Options
November 09, 2023

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In yesterday’s letter, I wrote:

❝

“For tomorrow, buyers continue to remain firmly in control. Until we see a significant support fail and NOT reclaim they remain so.

Be aware that when we finally do start a sell, it will be violent…

4383/4390 remain the key levels to breakout from which we were unable to do so today. I believe that unless volume returns we will be unable to do so.

If we lose 4360 and cannot reclaim I would short 4354 and target 4348…”

This is precisely what happened. Overnight, we never even tested the 4371 level and rallied up prior to the open to test 4395. Then we dipped hard to 4371. After retesting 4389 we fell to 4360, couldn’t hold and broke down through 4354 and 4348 all the way to a low of 4343.94.

See how well the levels work?

Now that a significant support has broken, where do we head from here? What levels need reclaimed to provide a path higher and which show us we need to go deeper?

More in the trade plan below.

The 0DTE $SPY 436 puts ran from a low of $16 to $272 = 1600% gain.

Unfortunately (or fortunately) I had already traded this contract before this massive run. From $55 to $75 at best sale for 36%. Here is the run I traded:

I hated watching these later in the day knowing I had once held them! I would have never held through a drop to $16 but I suppose I could have re-entered. This was my only primary trade and called out in the chat. I also did trade a lotto call that did not work out but used a small part of my profits from the first trade. I don’t usually do that but will do so on days where we could get a V recovery based on news or an event. 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 utilitarian. We got the rejection at the open and a deep retracement to a key level before bouncing. Then we dipped hard precisely to a key level before again bouncing and sold off remainder of the day. Always trust the levels!

Now we are sitting in AH right on the 4340 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.

Key Notes

This is not financial advice. This helps keep me honest and is a place for my notes. It is for educational & entertainment purposes for all who choose to subscribe. Not all investments are suitable for all investors.

I try to take action on less than 3 moves per day. Most days are chop and there are usually less than 3 great high confidence setups.

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