Thursday Sept 7 2023 SPY SPX ES Actionable Levels

$SPX breaks down after critical $SPY levels lost yesterday. How much deeper will we go?

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SPY Options
September 06, 2023

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In yesterday’s letter, I wrote:

❝

“For tomorrow we need a quick reclaim of 4498 and 4504 or else we will likely continue lower and test 4486 and 4480. If 4480 fails we will have a proper flush and I will be short. In that case we see 4470, 4460 and probably 4455.”

This is precisely what happened. After coming down and testing 4480 overnight and defending, we lost it in the regular session. This triggered a sell all the way down through the levels above (stopping at each along the way) and hitting a low of 4442.38.

We did then put in a bit of a rally late in the day but could not reclaim 4470 and never got close to reclaiming 4480 and the key levels of 4498/4504.

See how well the levels work?

Again, now that we broke down after the critical levels were lost yesterday, when does it end and how much further could we dip?

More in the trade plan below.

The 0DTE $SPY 446 puts ran from an AM low of $19 to $225 = 1084% gain.

I took this trade a couple times and best was $52 to $113 = 117%. This was after opening at $43 and taking a small profit and getting stopped out. My first trade was a slightly profitable call trade. Played both sides today. 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 fantastic. After multiple chop days we finally got the trend down - we couldn’t even get back to VWAP. Was nice to actually get some decent movement in one direction. Definitely could have played either side. The levels definitely guided the entry and exits as we could see where we were likely to defend and temporarily pause during the move. Always trust the levels!

Now we are sitting in AH right on the 4460 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.

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