Wednesday Oct 18 2023 SPY SPX ES Actionable Levels

$SPX defends critical level and rockets higher than sells off afternoon. What is next for $SPY?

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SPY Options
October 17, 2023

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In yesterday’s letter, I wrote:

❝

“For tomorrow, as long as we continue holding 4335/4344 we can continue filling out this range and eventually breakout above 4379/4389.

That may look something like chop down to 4351/4344 and bounce or 4358/4368 and eventually breakout of 4379, 4389. Then we can see 4395…

My lean is that we will fill out this range a few more times and eventually break above 4379 which we tested today.”

This is precisely what happened. We began losing levels overnight and more into the open where we put in a defense of 4335 (low of 4337.54) and then blasted up all the way to a high of 4393.57 - just shy of the 4395 level provided last night.

See how well the levels work?

I even sent this message prior to the open:

Now that we’ve once again defended the critical levels and rallied and then sold off some of it in the afternoon, where are we heading? And what key levels will tell us whether we break out or break down?

More in the trade plan below.

The 0DTE $SPY 434 calls ran from a low of $64 to $416 = 550% gain.

I took this trade from $73 (after originally entering in the low $90’s & selling half $102) to $354 at best sale for 385%. This was my only trade and called out in the chat. I did have two entries as noted and after selling half on my first entry for a slight profit I was stopped out for a loss on the other half. I kept patiently watching and re-entered when we had the final test and reversal. 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 marvelous. When we held the 4335 I knew that was the long entry. Then we made quick work blasting up 56 points! I was then not expecting us to drop and lose vwap but I was done trading for the day at that point. It became clear when 4379 couldn’t hold that we needed deeper into the close. Always trust the levels!

Now we are sitting in AH right on the 4364 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.

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