Friday Oct 13 2023 SPY SPX ES Actionable Levels

$SPX chops on CPI day but defends critical levels. Can $SPY withstand another test?

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SPY Options
October 12, 2023

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In yesterday’s letter, I wrote:

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“For tomorrow, if we can hold 4333/4326 on any sharp spikes down I believe we will continue the move higher.

We may only spike down to 4347 or 4357 and bounce. If we don’t even breach 4367 that would be extremely bullish. Then we can look at targeting 4388, 4393 and 4399.

If we lose 4347, 4340 and 4333 then that brings up 4326 and if we lose there we could see a direct path to the high 4200’s.

We may not even break below 4333/4326 or breakout above 4388/4393. We could have massive volatility and chop in this range.”

This is exactly what happened. The story of the morning was getting all the way up to the 4399 level and then rejecting. Then, we held the 4367 level and rallied which was (as noted above) extremely bullish. Then after hitting 4384 we rejected hard and fell all the way down to 4326, defended and then bounced late day. We even hit precisely, to the penny, the SPY low of the day at 431.23. This was exactly the level given out yesterday.

See how well the levels work?

Now that we’ve chopped around, defended the key 4326 and 4333 and bounced, where do we head from here? How much longer will we chop before making a significant move?

More in the trade plan below.

The 1DTE $SPY 434 calls ran from a low of $76 to $163 = 114% gain.

I took this trade from $106 to $148 at best sale for 40% gain and still holding 10% of the position overnight. This was my third and final trade all called out in the chat. I traded 2 calls and a put sandwiched in the middle. 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 grand. Today’s muted CPI morning turned into action in the afternoon. Always trust the levels!

Now we are sitting in AH right on the 4345 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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