Monday May 8 2023 SPY SPX ES Actionable Levels

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

In yesterday’s letter, I wrote:

“see us at least get back to the 4100 level and hold. To do that, we would need to break 4085 and 4091."

I had written about how since we broke through the bottom of this 1+ month consolidation range yesterday and we may be breaking lower. For that thesis to be negated we would need to see us break 4100 and hold. Well consider thesis negated so far!

This was a massive rally - 1.8% +

This is definitely the direction the market chose as every dip was bought and after a very good rally overnight we busted 4100 at the market open and rallied all the way to intraday high of 4147 before selling back off.

Even though it was a trend up massive rally it was not the easiest to trade as the big moves happened quickly and the rest was a lot of chop/retracement.

More on this in trade recap & Monday plan below.

The 0DTE $SPX 4120 call ran from an afternoon low of $390 to $2765 per contract. - 609% gain.

I traded these, and while I did not get them for $390 I did catch a good chunk of the move from $700 to $1300 = 86% gain. This was my second trade of the day - after initially opening up puts! Great example of being flexible and taking what the market will give you. More in the trade recap below.

Below, we’ll cover the actionable levels, how I played them today and what they mean for Monday.

Levels from last night were good (15 min chart). They allowed me to get some nice call scalps as we ran up the levels. Opening on short drops to the next level down. Always trust the levels!

Now we are sitting in AH sitting right under the 4137 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 Monday’s session and today’s trade recap.

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