Monday Mar 13 2023 SPY SPX ES Actionable Levels

Major sell off continues as NFP cannot save short term bull thesis. Regional bank concerns & 1.5% dip to remain under Jan '22 significant downtrend line.

In yesterday’s newsletter, I wrote:

“My lean tomorrow is to be cautious. We just dropped 100 points and NFP could cause much volatility that could shake many out of trades and cause a lot of losses.

My overall lean is if we cannot reclaim the 3928-3933 SPX levels then we will continue selling one level at a time.”

I also wrote:

“ If after NFP we remain below this we should sell down to 3903, 3895, 3883. 3866 would be up next.”

This is exactly what happened. After the NFP volatility and one short-lived relief rally we sold off one level at a time all the way through 3866 & even breaking 3848 briefly and then reclaiming after defense.

Now in after hours we have reclaimed the 3866 level.

The levels worked and clearly showed where we had support & resistance as we continued to break through level by level. Above is the 30 min chart w/ levels posted yesterday. Just play the levels!

We continue to sit well below the important downtrend line that traces all the way back to January ‘22. This is significant and should lead to a further flush.

There are obviously many concerning market related events taking place. Regional banks at risk, crypto, higher for longer, inflation data. This seems to be coming together in a perfect storm.

For me, I had huge put plays today - all for over 500% and some for 873% gains just by playing the levels.

Now we sit in AH resting on the 3861-3868 key support zone. What does this all mean and where do we go from here? Read below for my game plan which includes actionable support & resistance levels, outlook for Monday’s session and today’s trade recap.