Wednesday May 3 2023 SPY SPX ES Actionable Levels

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In yesterday’s letter, I wrote:

“If we fail 4158 I can see us moving down the levels, 4151, even 4142.”

Well, you can tell I was not expecting a big move before FOMC. Talk about understatement of the year. Not only did we 4158 and the levels above, but all the way down breaking 4092 briefly before rallying back up.

Interestingly enough, we lost the key level, the significant downtrend line from the Aug ‘22 & Jan ‘23 highs. We could not close above this level (4127 today and 4125 tomorrow).

Also, volume check!! More in the trade plan below.

The 0DTE $SPX 4110 put ran from an AM low of $40 to $2317 per contract. - 5692% gain.

I traded these, and I caught a small piece of the move (who was expecting that big of a move from the open!). I did trade them from $1260 to $2100 = 66%. This was one of two put trades as mentioned in chat. 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). While I mentioned in the letter last night that I was more interested in shorting the highs and didn’t think we were going higher before FOMC I did not expect this move. I also detailed in the chat early morning that I would open puts on any pop but we didn’t really pop - we just started falling! I had to find any kind of retracement to get into puts and then not hold too long as I didn’t know when we would reverse. Always trust the levels!

Now we are sitting in AH sitting just on top of the 4116 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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