Wednesday Oct 4 2023 SPY SPX ES Actionable Levels

$SPX breaks down after loss of key levels. When does the pain end for $SPY?

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SPY Options
October 03, 2023

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In yesterday’s letter, I wrote:

❝

“For tomorrow, we need to hold the 4286, 4277 and most importantly 4253 levels in order to continue a move higher.

If 4253 is lost, then watch out because we likely see low 4200’s in a hurry.

Shorting the loss of 4253 on a bounce would be a good trade.”

This is exactly what happened. We could not hold the levels indicated and most importantly we lost the 4253 level. Once this took place we saw a low of 4216 in a hurry.

See how well the levels work?

Now that we’ve lost critical support and flushed where do we head tomorrow and the rest of the week? More importantly, when will we know longs are safe?

More in the trade plan below including key levels to watch out for.

The 0DTE $SPY 421 puts ran from a mid-day low of $32 to $127 = 297% gain.

I took this trade prior to this run unfortunately from $99 to $115 at best sale. This was my first of two trades. Second I tried the long. Seems unfortunately I entered short too late (and too early from the chart above). Not always going to get the timing right. All you can do is use the levels as your edge and trade the best you can. 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 amazing. They showed where we had resistance and when we couldn’t overcome and then broke down key supports we knew the direction we were headed. They also showed where we would have at least temporary support and helped guide exits. Always trust the levels!

Now we are sitting in AH right on the 4222 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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