Tuesday May 2 2023 SPY SPX ES Actionable Levels

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In Friday’s letter, I wrote:

“For Monday, I think if we can hold 4169 we could target 4184, possibly 4194. The first would bring us outside the range and would be a true test if we can hold above on the first breakout.

More realistically though, I see us chopping and staying beneath 4184 until after FOMC. It could be a breakdown of 4169, 4163 even a breakdown (or failed breakdown) 4158 that then recovers.”

This is exactly where the market took us. First a recovery of 4169 that targeted 4184 that we could not break out of and then we broke down 4169, 4163 and late in the day testing 4158.

After two red sessions that brought us down to the bottom of the consolidation range last week, we blasted back to the top and here we are, chopping around.

And yet, we are still within the same range as we were since 3/31.

Will we finally breakout post FOMC?

More in the trade plan below including a check on volume.

The 0DTE $SPX 4180 put ran from an intraday low of $262 to $1590 per contract. - 506% gain.

I traded these, and I caught a decent chunk of the move entering at $370 and closing at $1100 = 197%. This was my final trade after another small put trade in the morning. 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 last night were good (15 min chart). I was able to trade puts multiple times as we lost momentum up into the 4184 range. More info in the trade recap regarding this. Always trust the levels!

Now we are sitting in AH sitting just on top of the 4158 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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