Tuesday Oct 17 2023 SPY SPX ES Actionable Levels

$SPX dip is bought and we rally hard. What is next for $SPY and where do we face tougher resistance?

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SPY Options
October 16, 2023

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In Friday’s letter, I wrote:

❝

“For Monday, if we can hold the 4291 level, or reclaim on any dips below we can continue basing for a move higher…If we hold 4291 or better yet, hold 4305/4314 we can base and make the run back to levels from earlier today.

Longing the 4314 after a dip under to 4305 or close or even longing a breakout of 4327. Both of these are options.

We will have to see how Sunday futures play out but we may not even get an opportunity to long the 4327 breakout as we may open above and remain above into Monday open.

If we do hold the above levels, we can base and break 4337, 4342 and 4347.

Even 4353, 4359 and 4370 on volume if we can breakthrough 4347.”

This is precisely what happened. We did bounce right off the 4327 level in the early morning hours Monday, 5 hours before the open. We never saw that level again and didn’t get a chance to buy it. Then, we reclaimed 4347 prior to the open and into the open rocketed up past 4353, 4359, 4370. Then we blasted through even more levels to hit a high of 4383.33, just shy of the 4385 level provided on Friday.

See how well the levels work?

When I saw all of this take place in the futures market, I commented an hour before the open:

Now that we’ve defended the key levels and rallied hard (>1% day) where do we head next and where are we to face heavier resistance?

More in the trade plan below.

The 0DTE $SPY 437 calls ran from a low of $24 to $65 = 171% gain.

I took this trade from $34 (after originally entering in the $40’s) to $61 at best sale. This was my first of two trades. The second was trying puts with a small part of the profits but I got stopped out for a small loss. I missed the big obvious rally at the open due to having an appointment, but I was calling for that to happen an hour before the open! It looked like it was going to happen but I had to be away unfortunately. So I did the best I could to still get a trade in after the big move. 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 Friday were lovely. When we held where we needed to overnight and we started rallying early AM I knew where we were headed. Then into the open we blasted. The rest of the day was chop and price discovery, but we held strong. Always trust the levels!

Now we are sitting in AH right on the 4368 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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