Friday Oct 6 2023 SPY SPX ES Actionable Levels

$SPX chops around and bounces off critical levels. Did $SPY hold where it needs to as employment report is on the horizon?

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SPY Options
October 05, 2023

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In yesterday’s letter, I wrote:

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“For tomorrow, we need to defend the 4243, 4234 and 4223 (lowest) levels in order to keep the move up alive.

If we do, we can continue basing between 4252 and 4275…

If we lose 4243, then that sets up a test of 4234 and if that is lost then 4223. A failed breakdown of 4223 or 4234 would be a great long.”

This is exactly what happened. We ended up defending 4223 (4225.91 low of day) and then reclaimed multiple levels above to hit 4267.13 (high of day) just above the 4266 resistance level. Those who took a long on a test of 4223 or a failed breakdown of 4234 did very well!

See how well the levels work?

Now that we retested lower and held and are back in the same spot as yesterday’s close, where do we head tomorrow and when will we know longs are safe?

More in the trade plan below including key levels to watch out for.

The 0DTE $SPY 421 puts ran from a low of $20 to $98 = 390% gain.

I took this from $62 to $78 at best sale for 26%. This was my only trade of the day and called out in the chat. Best trade would have been the short off the open or the afternoon rally but the first happened before I really like to start trading (I like to let it shake out) and the second happened after I was already done for the day. In hindsight I wish I had took my advice above and longed the 4223 test or 4234 reclaim. 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 great. I do wish we had broke more of them in one direction! We were due for some chop given the strong trend days we have had. They showed where we had support and where we had resistance to move any higher. This helped guide our entries and exits! Always trust the levels!

Now we are sitting in AH right under the 4257 key resistance 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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