Thursday May 11 2023 SPY SPX ES Actionable Levels

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In yesterday’s letter, I wrote:

“For tomorrow, I don’t believe we would see real selling until we break 4106.

To break 4106 we would need to break 4114. This is the lowest that we would want to spike downwards on CPI news and still look to continue upwards. If we hold that level then we can bounce and hold 4120/4129 and move higher from there.

If this holds, we could test and break 4143, 4152 & 4165.”

This is what happened. The lowest we spiked down on CPI news was 4114. Then we busted up through multiple levels including 4152. We had the regular session open and sold off all the way back down for a failed breakdown of 4114 and then bounce.

After reclaiming some levels we fell even further down to 4098 where this level was defended and then had a massive squeeze up to 4147.

Bulls defended where they had to, yet we are still firmly in the range we have been in for 1+ months. Where will we go from here?

More in the trade plan below.

The 0DTE $SPX 4135 calls ran from afternoon low of $20 to $1300 = 6400% gain.

I traded these, and caught a decent chunk of the move from $170 to $900 = 430% gain. This was my final trade of the day. In the AM I closed out two sides of a long strangle that I opened at the close yesterday. First the calls and then the puts after we dipped a bit. More in the trade recap below.

Below, we’ll cover the actionable levels, how I played them today and what they mean for tomorrow.

Levels from last night were great (15 min chart). Finally some good movement from the CPI move up, to the regular session down and finally a squeeze up end of day. This was very helpful to close the calls & puts opened yesterday as well as get into some scalps throughout the regular session. Always trust the levels!

Now we are sitting in AH sitting right on the 4134 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 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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