Tuesday July 18 2023 SPY SPX ES Actionable Levels

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In Friday’s letter, I wrote:

This is precisely what happened. We were able to hold 4492 overnight and reclaim 4497 early morning. After the open we were able to reclaim multiple levels all the way up to a high of 4532.85 and new YTD highs.

This was 1.85 above the next key level indicated in Friday’s letter.

See how well the levels work?

Now that we have again punched through to new 52 week highs, what are the must hold levels to keep the rally alive?

Was the sell off into the close a sign of things to come? What story does volume tell? And what are the key targets on the way up?

More in the trade plan below.

The 0DTE $SPY 450 calls ran from a low of $41 to $195 = 376% gain.

I traded these and got in with a smaller position at $90 and then added more on dips (because we were still holding key level) at prices from $64-$79. My highest sell as I scaled out was $110 = 72% max gain. Obviously traded in a tight range so it was easier to take the wins when it was there rather than hold out for the highest possible that may never come. I tried one other trade at the very end of the day. A very small size 4530 0DTE call. This initially went well as I had a great entry but overall was a small loser. 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 helpful (15 min chart). They kept me out until we had a failed breakdown of a level and then got me long. They also helped me scale out as we reached next level up. Always trust the levels!

Now we are sitting in AH right under the 4520 key 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 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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