Monday Dec 18 2023 SPY SPX ES Actionable Levels

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In yesterday’s letter, I wrote:

We had a bit of both of these today. We did end up defending 4695 - only got as low as 4704 and we could not break higher than 4725. The intraday low of 4704.69 was just below the 4706 level and we rallied off that level hard to the day’s high.

See how well the levels work?

After another consolidation day, what are the critical levels to hold on Monday and what level tell us the next move up is in play?

More in the trade plan below.

The 0DTE $SPY 470 calls ran from a low of $61 to $95 = 56% gain.

I traded these from $84 to $90 called out in the chat and $66 to $86 on my own for 30%. This was my only trade of the day. I do wish I had had a better entry, but I was happy to be green on a chop day so I’ll take it. Days like this you have to get in, take your little profit and get out. 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 the prior letter were great. It was chop city, but still the levels gave clear targets for acceptance and support. Always trust the levels!

Now we are sitting in AH right on the 4712 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.

Trading Plan

Here is a current check of the daily:

This includes all the way back to 3/30 & all overnight action.

Today we printed an inside day with a lower high and higher low. Tight range, lots of chop and closed near breakeven.

Quick volume check:

Low volume Friday. Need to see Monday’s print to get a better read.

Monday we have a light day in terms of data releases with only the NAHB Housing Market Index during the session.

As readers know trading after a massive move in either direction is risky.

Trying to predict when trend will break is a fool’s game because the trend can be stronger than you ever realize.

Going with the trend is hard because it has already run so far (or dropped) and move may be close to over.

All you can do is pick your entries carefully and with proper position sizing. Trading out 1-3 DTE or further also helps soften the blow.

Yes it will decrease the amount of profit but will greatly help keep you in a trade long enough to see return.

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