Thursday Nov 9 2023 SPY SPX ES Actionable Levels

$SPX major consolidation and range tightening. Which way will we break for $SPY and was a key level rejected today?

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SPY Options
November 08, 2023

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In yesterday’s letter, I wrote:

❝

“For tomorrow, buyers continue to remain firmly in control. We can continue consolidating and eventually breakout IF (and only if) volume returns so that we can breakout over the 4383/4390 level.

We may base between 4369-4375/4383 and eventually get a stab up to 4390…

You could try bidding 4369 or a failed breakdown that reclaims. 4364 and 4358 are safer longs if we see a defense.”

This is precisely what happened. Overnight, we defended the 4369 level and then ran up to reclaim 4383 in premarket. After the open we continued pushing and tested 4390 but could not accept the breakout there. Then we fell all the way down to 4358 and at that point bounced all the way back to 4388 before the close.

See how well the levels work?

Now that we’ve had so many green days and are at the top of the range where do we head from here? Which key levels light the way?

More in the trade plan below.

The 0DTE $SPY 437 puts ran from a low of $48 to $222 = 363% gain.

I traded these from $66 to $200 at best sale for 203%. This was my only trade of the day and called out in the chat. I really didn’t want to trade the short, I wanted to trade the long but we had already run so far before and into the open that I was looking for either acceptance of the breakout or rejection. I got the key that we were not accepting the 4383 and entered. We decided to bounce up just a bit higher to test 4390 before really coming back down. I trusted the levels and was willing to hold until 4390 acceptance. 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 perfect. We made the move into/at the open and rejected, then we bounced right off a level and ran back up the rest of the day. We clearly saw where we had support and resistance for entries and exits. Always trust the levels!

Now we are sitting in AH right on the 4371 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 & entertainment purposes for all who choose to subscribe. Not all investments are suitable for all investors.

I try to take action on 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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