Wednesday May 24 2023 SPY SPX ES Actionable Levels

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In yesterday’s letter, I wrote:

This is exactly what we saw occur today. In fact, I tweeted in the morning prior to the open:

This is exactly what happened, we bounced around a bit, had a failed breakdown of 4178, could not breakthrough 4184 and once we lost 4178 it was all selling until we touched 4142.

Now that was a great move, but what happens now?

We are firmly back in the consolidation range for the past 2 months, levels we have been fighting since March 2022!

Will buyers defend and buy this back up or are we destined to be confined to this range some more? Could we break down now below the bottom of this range just as we did last time we had a spike above?

More in the trade plan below.

The 3DTE $SPY 416 puts ran from a low of $133 to $364 = 174% gain.

I traded these, and caught from $197 to $309 for 57%. This wasn’t even my biggest % gain!

This was my last trade of the day (other than a 414 0DTE put lotto!)

Early in the day I tried puts but after dipping below 4178 we failed to breakdown and bought it back up. I also tried calls! It wasn’t until we lost 4178 that we really had something worth trading. 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). The levels clearly showed where we would have some temporary pause or reversal. Once we lost 4178 it was choppy (check a 30 min chart-a lot clearer!) but we headed all the way down to 4142 (4142.54 was day’s low). The levels also help with entry while we are well underway in the midst of a move. Even though we are trending down, you will want to look for a move up to a level to enter on. You can see these above as well. Always trust the levels!

Now we are sitting in AH right on the 4142 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.

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