Thursday June 8 2023 SPY SPX ES Actionable Levels

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In yesterday’s letter, I wrote:

Well overnight and into the open this was the case. We held 4277 and reclaimed 4283 prior to the open. Then after the open we blasted up to 4298 where we rejected and it was all downhill from there.

We did end up defending 4267, which is where I said I would wait and look for puts there and at the level below based on how we reacted. But it was all chop for majority of the day between two levels.

Really not a great day to trade! Has $SPX cooled off enough now or will we need to backtest lower before we can make another big move?

More in the trade plan below.

The 6DTE $SPY 430 calls I traded from $98 to $116:

I traded these several times and honestly these were counter trend but felt that risk/reward as long as we were above 4167 was for entering on a dip and hopefully we get continuation. Ultimately this never came. Honestly continuation really didn’t even come for shorts either except for in the AM. After was all chop. More in the trade recap section.

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 great (15 min chart). Just really shouldn’t have traded them today except for the move down in the AM. Because we have been in an uptrend (macro) and I don’t like to counter that I am more interested in finding good long opportunities. That works much of the time (because you don’t know when the rally will stop) but it has its costs. Today is payment for that. This is why I have been trading light! I also wish we had more movement in the afternoon, because if we had failed another level I would have tried the put and if we had broken above I would have tried calls again. We just chopped which kept me out of the trade. Always trust the levels!

Now we are sitting in AH right on top of the 4267 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.

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