Monday Oct 30 2023 SPY SPX ES Actionable Levels

$SPX breaks down further as key levels lost. Where could we see a relief bounce for $SPY?

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SPY Options
October 27, 2023

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In yesterday’s letter, I wrote:

❝

“For tomorrow, we are still in a major trend down environment until we reclaim levels much higher.

Specifically, we need to defend the 4132 level to keep a shot at putting in at least a temporary bottom.

If we do lose the 4132/4126 levels I would look at shorting for a move down.

First 4120, 4114 and 4105.”

This is precisely what happened. We lost the critical 4132 & 4126 levels and then fell all the way down breaking through all the levels noted above to 4103.78 before bouncing, just below the 4105 level noted above.

See how well the levels work?

Now that we’ve sold off even deeper, what key level could be a spot to see a relief bounce?

More in the trade plan below.

The 0DTE $SPX 4120 puts ran from a low of $145 to $1765 = 1117% gain.

I traded these from $550 to $1230 at best sale for 124% gain. This trade was called out in the chat and was my second trade of the day. My first trade was trying to long the breakout of the 4152 level. That trade overall ended up being a loser after taking 50% off for profit. This led me to trade one more try (first trade is a loser I can take another trade). The short above was a great trade and I was able to take most of the position off for profit relatively quickly. 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 beautiful. They gave us clear indication of where we may find support and resistance. Once the key levels were lost from the plan yesterday, it was clear where we were heading. I used this moment to enter the second trade of the day into puts. Always trust the levels!

Now we are sitting in AH right under the 4118 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.

Key Notes

This is not financial advice. This helps keep me honest and is a place for my notes. It is for educational purposes for all who choose to subscribe. Not all investments are suitable for all investors.

I try to trade less than 3 moves per day. Most days are chop and there are usually less than 3 great high confidence setups.

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