Wednesday Nov 1 2023 SPY SPX ES Actionable Levels

$SPX continues the rally. As FOMC is on deck are bulls out of the woods?

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SPY Options
October 31, 2023

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In yesterday’s letter, I wrote:

❝

“For tomorrow, we are still very much in a major downtrend but we made the first step in turning this around. Holding the 4126 level will be critical to keeping this thesis alive.

If we can defend or quickly reclaim the 4126 level on any spikes down, (better yet not even test) we can rally above through 4141, 4155 to 4171, 4177 and 4184.

On volume we could see 4194…”

This is precisely what happened. We never retested 4126 and launched off the 4150/4155 levels to reclaim all the levels above including 4194. The intraday high was 4195.55, precisely above the 4194 level!

See how well the levels work?

Now that the rally has continued for a second session, what clues do we have in key levels & volume that tell us where we head next? What impact does FOMC have?

More in the trade plan below.

The 0DTE $SPY 416 calls ran from a low of $50 to $256 = 412% gain.

I traded these in 3 separate entries/exits all for profit. These were all called out in the chat and the highest I sold for was $140 ($121 entry) and also had exits at $103 ($77 entry for 34%) and $120 ($87 entry for 38%). It was a bit of a choppy day until it really got going, and once it ‘really got going’ I was done trading for the day. That’s ok. I had 3 profitable entries/exits into the same 416 contract and called it a day. 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 on point. They gave us clear indication of where we may find support and resistance. Once we launched off the critical level from the plan we knew where we were headed. Took its time to get there though! Always trust the levels!

Now we are sitting in AH right on the 4177 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.

Key Notes

This is not financial advice. This helps keep me honest and is a place for my notes. It is for educational purposes for all who choose to subscribe. Not all investments are suitable for all investors.

I try to trade less than 3 moves per day. Most days are chop and there are usually less than 3 great high confidence setups.

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