Tuesday May 16 2023 SPY SPX ES Actionable Levels

Actionable moves in both directions but consolidation continues! As we set up for big move - which way will we break?

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SPY Options
May 15, 2023

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In Friday’s letter, I wrote:

❝

“…the significant downtrend line that we cannot stray far from. For Monday, that is located at 4116-4117.

I believe that buyers are in control above this level. We could dip one level below and quickly reclaim (4104) but any further and we could flush.

This means that I will be watching 4130/4135 and 4146 as next targets up if we continue to hold 4116.”

This is what happened today. After a rise overnight and then flat AM session, we sold off into the open losing the significant level and getting close to testing 4104. This is where we bounced.

We did hold 4116 in the end and even reclaimed 4130/4135 by day’s end.

Today had actionable moves first to play the downside in the morning and then calls the remainder of the day.

But now that buyers have bought us back up, where do we go from here?

More in the trade plan below including a check on volume and notes on OPEX week.

The 0DTE $SPX 4125 calls ran from AM low of $320 to $1800 = 463% gain.

I traded these, from $490 to $880 = 80% gain. This was my second trade of the day after opening puts near the open. 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 Friday were great (15 min chart). Had some great morning movement to the downside and then a reversal to defend and pop back up above key levels. Then we had a lot of chop end of day. 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.

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