Thursday Mar 16 2023 SPY SPX ES Actionable Levels

In yesterday’s newsletter, I wrote: “My lean is that until we see massive volume and buying above 3925 I remain very cautious about moving higher over the next days/weeks.”

I also wrote: “If we fail to break 3925 or we break but then ultimately fail as we did today, I see us right back down to 3860. Breaking level by level all the way down.”

This is precisely what happened, and it took breaking 5 levels posted last night to get to 3860. Overnight, with bank worries in Europe troubling the market, we started selling off. SPX opened 3876 and was down to 3858 in the first 15 min candle. Ultimately reaching a low of 3838 we then rallied back up to close 3892 on news that Swiss Central Bank will backstop Credit Suisse if necessary.

The levels worked out great today. Leading to massive put gains as I opened off failed breakouts of specific levels. Simply trust the levels and you will win.

Currently, we are still sitting right at (or below) the all important downtrend line that traces all the way back to January ‘22. For me, this is very telling. I believe what is happening in the next session or two will decide the direction for the next several days/weeks. More below on why there are several different methods to view it that either show us below or right at.

For me, I had huge put plays today - all for over 100% and one for approximately 245% gains by trusting the levels. More on that in the trade recap and exactly how I entered the position below.

Now we sit in AH testing the 3904 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 tomorrow’s session and today’s trade recap.

Learn the system to make 1-3 low risk, high trades per day using SPY/SPX options.

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