Monday Oct 9 2023 SPY SPX ES Actionable Levels

$SPX defends critical level and rallies hard. What key targets are next for $SPY?

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SPY Options
October 06, 2023

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In yesterday’s letter, I wrote:

❝

“For tomorrow, we need to defend the 4220 level as absolute lowest (yesterday I had indicated 4223 which we held today).

If we can, we can base between 4221 or so and 4270 for an eventual breakout above 4276.

A long from 4235/4229 would likely be a gift if we stay within this range and end up defending the lower end of this zone.

If we do eventually we can break 4257, 4264, 4270 and 4276. Then we will have recovered the key level from the most recent sell off. We should really rally off a 4276 breakout much higher. First 4282, 4288 and 4296.”

This is exactly what happened. We defended 4220 (low 4219.55) and blasted to a high of 4324.1 over 100 point range reclaiming 4296 as well as 3 additional levels and closing at 4308.50.

See how well the levels work?

Now that we put in the defense and rallied hard, what key levels do we need to watch out for and could we retrace part of this move?

More in the trade plan below.

The 0DTE $SPY 428 calls ran from a low of $3 to $316 = 10433% gain.

I took this trade from $94 to $200 at best sale for 113%. This was my only trade of the day and called out in the chat. I wanted to enter long (in fact I had 423 calls pulled up) but had to step away for a few minutes and when I got back we had already blasted! I missed the best entry which was when we defended 4220 for a final time and reclaimed key levels & vwap! 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 brilliant. We put in the defense and ran hard. Not only did we reclaim levels lost on 10/3, we have reclaimed a bit higher and set ourselves to base for the next move. Always trust the levels!

Now we are sitting in AH right under the 4315 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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