Thursday Nov 2 2023 SPY SPX ES Actionable Levels

$SPX continues the rally for a third straight day. Is a pullback on deck for $SPY?

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SPY Options
November 01, 2023

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In yesterday’s letter, I wrote:

❝

“For tomorrow, I believe that as long as we do not see lower than 4142/4135 on any spikes down we can continue to keep Friday’s low as a pivot and head higher overall.

That is quite a ways down from here so I am first watching the 4161 level. If we can fail the 4169/4161 area and reclaim that would be a good shot at getting long. From there we can reclaim 4185 by way of 4177 and target 4194, 4199 and 4205.

Even 4211, 4217, 4223 and 4228 on volume.”

This is precisely what happened. We ended up testing 4169 overnight and defending hard prior to the open. Once we opened we ran to 4228 level before rejecting and retesting 4205 before launching again, breaking all the levels above including and additional level 4235!

See how well the levels work?

Now that the rally has continued for 3 straight sessions, what key levels are next and what do those levels and volume provide in terms of direction and where a pullback may take place?

More in the trade plan below.

The 0DTE $SPY 421 puts ran from a low of $127 to $244 = 92% gain.

I really wanted to trade the move up but because I missed that entry I decided to try a retracement after hitting a local high for the day. I really wanted to have my main trade completed and done prior to FOMC release and presser. I opened these when we were struggling to accept the 4223 breakout. I traded from $150 to $223 for 49%. This was my first trade called out in the chat. My second was a small lotto of $SPX 4215 puts near the ned of the day. I opened these at $30 and exited at best sale at $60 for 100%. Again, really wanted to trade the move up and that was the plan as written but sometimes you have to adapt if you miss your entry. 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 great. They clearly showed where we had support and resistance and failed breakouts/breakdowns. I used these to open puts twice at local highs. Always trust the levels!

Now we are sitting in AH right on the 4240 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.

Key Notes

This is not financial advice. This helps keep me honest and is a place for my notes. It is for educational purposes for all who choose to subscribe. Not all investments are suitable for all investors.

I try to trade less than 3 moves per day. Most days are chop and there are usually less than 3 great high confidence setups.

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