Monday Sept 18 2023 SPY SPX ES Actionable Levels

$SPX breaks down. Can $SPY bounce back and when?

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SPY Options
September 15, 2023

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In yesterday’s letter, I wrote:

❝

“For tomorrow, we will want this move to settle and decide if there are buyers to support the move higher.

The daily volume does have me a bit concerned. If you want to try the short that we fall back into the range or even to the lows of the range I would wait until the fail of 4494. Then on a bounce you could get the level to level to 4486, 4480 and hopefully run further.

If we get down to 4480 that could be a good spot to try the long again if we hold. Otherwise we fall to 4473, 4465 and even deeper…Could be a warning sign that this move was on lower volume.”

This is exactly what happened. It was a warning sign indeed and we ended up going ‘even deeper’ as mentioned. We could not hold 4480 and we did not get the bounce we were looking for and we continued falling through all of these levels as well as breaking all the way down to 4447.21.

See how well the levels work?

Now that we’ve broken down, is a big relief rally on deck? What are the key levels that will guide us to let us know that is coming?

More in the trade plan below.

The 0DTE $SPY 445 puts ran from a low of $20 to $208 = 940% gain.

I took this trade from $36 to $46 for a quick 28%. I also took a lot off at $45 and the rest stopped out at $42. This was all before the selling really picked up. I almost got back into it but typically do not reenter if I have a winning trade. It was Friday so no need to risk a great week. Can’t say I don’t wish I had that chance back though! 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 amazing. Once we broke a couple key levels it was all downhill from there. Yes, they did provide some temporarily relief bounces but those were opportunities to enter as the move continued all day. Always trust the levels!

Now we are sitting in AH right on the 4447 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.

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