Friday Nov 3 2023 SPY SPX ES Actionable Levels

$SPX breaks out in a big way. When is first pullback for $SPY?

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SPY Options
November 02, 2023

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In yesterday’s letter, I wrote:

❝

“For tomorrow, … I want to be careful to not long the highs so I would like to bid the 4213 level or have a failed breakdown of the 4223 that then tests 4213 and pops back above 4223.

Even safer to long below that on a failed breakdown that shows signs of defense.

If we can then after a session or two we can target 4248, 4254, 4261. On volume we could see 4270, 4279 and 4284 (second target).”

This is precisely what happened. We never even tested the levels below that were labeled ‘must hold’ and we launched all the way through all levels above to a high of 4319.72 just above the 4317 price point provided yesterday.

See how well the levels work?

Now that we’ve broken out and the rally has continued for 4 straight sessions, what key levels are next and what do those levels and volume provide in terms of direction and where a pullback may take place?

More in the trade plan below.

The 0DTE $SPY 428 calls ran from a low of $59 to $289 = 390% gain.

I traded these from $90 to $209 at best sale for 132%. This was my only trade of the day and called out in the chat. When the day started, I thought it might be a rare no-trade day for me as we had already run up so much overnight, but an entry presented itself. I entered on a stab down close to the 4279 level that defended sharply and moved back up to above 4284. 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 fantastic. They clearly showed where we had support and resistance and when we started breaking through key levels we knew where we were headed. I entered on a failed breakdown of 4284/defense of 4279 to go long into the calls above. I also used the levels to know how to scale out and when as we approached resistance. Always trust the levels!

Now we are sitting in AH right on the 4312 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 purposes for all who choose to subscribe. Not all investments are suitable for all investors.

I try to trade 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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