Wednesday Nov 22 2023 SPY SPX ES Actionable Levels

$SPX consolidates between two major levels. What can happen during holiday/short week for $SPY?

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SPY Options
November 21, 2023

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In yesterday’s letter, I wrote:

❝

“For tomorrow, how we backtest (if we get there) the 4523 level is critical. We must hold this level to build on what progress was made today. If we fail and quickly reclaim this level or not even retest and are able to hold 4528/4535 and 4544 (backtest in progress now) then we can head higher.

You could try the long on a 4523 failed breakdown or 4535 and even 4544 if we defend.

We also could chop between 4523 and 4554 and not really move anywhere.”

This is precisely what happened. We failed 4544 a few hours before the open and then ran down to test 4523 (4525 low of day) within the first hour of trading. Then we defended strongly and rallied back up to a high of 4542 and chopped the rest of the day.

See how well the levels work?

Now that we’ve held the first test of a key level and consolidated a bit, how much more can we run? What does volume tell us about the likelihood of breaking out this week?

More in the trade plan below.

The 0DTE $SPY 453 calls ran from a low of $50 to $110 = 120% gain.

I traded these from $65 to $98 at best sale for 51%. This was my only trade of the day called out in the chat. I scaled out in 6 waves - all for profit. I was kind of expecting not to trade today. I thought we would chop (we did) and had such a good trade yesterday there was no need to risk it. The test of the 4523 key level was too good of a setup to pass up. 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 so-so. When we defended the key level at 4523 I knew we could move up from there. That guided my long entry and levels above guided my exits as I was not expecting that we could reclaim 4544. Always trust the levels!

Now we are sitting in AH right on the 4533 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 & entertainment purposes for all who choose to subscribe. Not all investments are suitable for all investors.

I try to take action on 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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