Wednesday Apr 26 2023 SPY SPX ES Actionable Levels

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In yesterday’s letter, I wrote:

We ll we got a dip that couldn’t recover! Not only did we fail the levels above but we broke down 4086 and touched 4076.

This was a major move on the daily, see below:

That last small green bar is post-close today. The red bar prior is regular session today. We finally made a significant move but ultimately still within the consolidation range 11-14 sessions ago. As we sit near the bottom of this range, will we head even lower? Or will earnings bring buyers to bid back up?

More in the trade plan below.

I also loved all the comments in the chat. Especially where I had an opportunity to save some from entering longs that would have gone nowhere or worse, likely been big losers.

I am not always right, but if I can save someone from a poor entry I will definitely try and will always give my honest opinion. I know a lot of people on twitter and elsewhere were entering longs at a time when I saw no reason to, in fact a dangerous time to enter in my opinion.

The 7DTE $SPX 4110 put ran from an AM low of $2449 to $5015 per contract. - 116% gain.

I traded these - and caught a decent chunk of that move. I also traded these in addition to some 1DTE puts. This was my first trade. Then I played another put off failed 4110 breakout after it touched VWAP and then dropped below. 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). They allowed me to play the dip starting in the AM and throughout the day. We didn’t pop until just after the close when we had some tech earnings (MSFT/GOOGL) give a pop. More info in the trade recap regarding this. Always trust the levels!

Now we are sitting in AH sitting just on top of the 4087 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.

Learn the system to make 1-3 low risk, high trades per day using SPY/SPX options.

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