Monday June 5 2023 SPY SPX ES Actionable Levels

Major breakout is here. What are next targets and when will the first real backtest occur and how deep?

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SPY Options
June 04, 2023

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This is a repost of Friday’s letter for Monday.

In yesterday’s letter, I wrote:

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“If we can hold 4203 or fail the breakdown (lose and quickly reclaim) then we can make the move higher tomorrow.

First we knock out 4226 (possibly overnight) and then target 4237 & new YTD highs.

If we can put a buffer or two level between the newly minted high, say 4247/4254 and hold it that will be significant.”

Well consider this move significant. We did take the path above overnight and this morning. Prior to the open we were able to knock out the 4226 & 4237 levels. These held on backtest prior to the regular session and then we opened with a spike to 4267 and then fail breakdown of the 4247 level.

After that failed breakdown, it was all up from there. $SPX hit a high of 4290. A level not seen since August 2022.

This breakout is significant, no matter how you look at it. Where we go from here will be key. That is what we are focused on in the trade plan for next week below.

The 0DTE $SPX 4280 calls ran from an afternoon low of $340 (they were $90 earlier in the day) to $1127 = 231% gain.

I traded these and was able to enter at $450 & close runners at $7.90 for 76% gain. I had traded several other calls earlier in the day. Had a great entry from the failed breakdown of 4247 and 4279 - called out in chat. Honestly the best holds were the calls traded with June 6 & 8 expiry’s. Those were less volatile and made it easier to not get stopped out. Most of my shorter duration were stopped out (for profit) but if I could have managed to hold on to them they would have been major gainers. More on this in the trade recap.

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 fabulous (15 min chart). They really helped me in the morning not go short and helped guide every entry on puts, taking them on failed breakdowns of levels. Always trust the levels!

Now we are sitting in AH right on top of the 4277 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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