Wednesday July 26 2023 SPY SPX ES Actionable Levels

$SPX prepares for FOMC volatility. Which way will we break?

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SPY Options
July 25, 2023

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In yesterday’s letter, I wrote:

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“If we are basing for another move higher I believe if we can hold the 4542/4532 levels we can take a run at 4567, 4576 and 4583. If we clear here we could run multiple levels higher, although this may wait until FOMC to do so.”

This is precisely what happened. We did defend 42 overnight and then make a run taking out 4567, 4576 and making an attempt at 4583 (4580.62 high of day) which let us to new 52 week highs!

See how well the levels work?

Now we have FOMC tomorrow. Now that we are back at top of this range, can we breakout higher?

More in the trade plan below.

The 0DTE $SPY 455 calls ran from a low of $68 to $191 = 181% gain.

I traded these between $77 and $121 = 57% gain. I actually traded them multiple times all for profit! Then, later in the day after a nice run I thought we were exhausted so I opened puts. This counter trend trade was not the right way to go. Fortunately I did get the move I was looking for and got out most for a nice trade but kept runners too long and ended up eating into my call gains! 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 great (15 min chart). They got me long into the open and then I was able to get scale out and back in multiple times as we ran up the levels. They also helped guide my entry into puts but I was a bit early and didn’t execute as I should. Then, because I was in 0DTE I didn’t have the time I needed to capitalize on it. Always trust the levels!

Now we are sitting in AH right on the 4577 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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