Thursday Aug 24 2023 SPY SPX ES Actionable Levels

$SPX >1% rally reclaims key levels and puts in a new local high. Does volume support that the bottom is in?

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SPY Options
August 23, 2023

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In yesterday’s letter, I wrote:

❝

“For tomorrow, nothing has changed. We are just above the 4379 level and we must hold as we have done so far to keep the bull case intact.

I would not try to long if we lose it. However, on a failed breakdown where we flush and then reclaim 4385 or 4394 for example that would trigger a long opportunity.

If we hold on another test or not even get down there we could reclaim 4394, 4402, 4407.

On strong volume we could take 4418, 4429 and 4437.

At this point we will have made higher highs from prior session and defended the critical 4379 zone. This is pretty bullish scenario.”

This is exactly what happened. We held the 4379 level overnight and ran all the way up from the open to close at 4436 after hitting 4443 intraday high.

In AH we rocketed up to reclaim 4457 after NVDA 0.00%↑ earnings.

See how well the levels work?

Now that we’re higher than the highs of the prior 5 sessions, is the bottom in? And what are targets to confirm this? Plus, what are some warning signs when we look at volume to support the move?

More in the trade plan below.

The 0DTE $SPY 442 calls ran from a low of $31 to $193 = 523% gain.

I took this trade from $80 to $115 at best sale 44%. This was my only trade of the day. I wish my runners could have lasted longer and participated in this, but there were some good reasons why I didn’t swing overnight. Additional information on why I took the trade and the entry 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 showed where we would have some slowdown in the move up and targets to hit. Always trust the levels!

Now we are sitting in AH right on the 4457 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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