In yesterday’s letter, we wrote:

This is what happened. The market opened with a significant move after we lost the 5379 level prior to the opening, and we quickly failed at 5346. After a few bounces between the 5329 and 5346 levels, 5329 became resistance, and we saw a massive drop all the way down to a low of 5115.27, which was exactly at the "definite short" zone that I had highlighted. In fact, this was only .25 away from our /ES offset provided for this level at 5146.75. Then, we had a massive 200 point rally from this support. $SPY ( ▲ 0.14% )  $SPX ( ▲ 0.13% )  $ES_F ( 0.0% )  

See how well the levels work?

Now that we had another sell day after losing a key support level and gave back a big chunk of yesterday’s rally BUT then rallied hard off the lows, where do we go from here? Can we build on today’s late day move and move higher? Which key levels will guide us from here?

More in the trade plan below.

Below, we’ll cover the actionable levels, how we played them today and what they mean for the next session.

The overall levels played out incredibly well. From the short entry and failure of multiple supports - including the key 5329 to the defense & long entry right at the 5109 zone to run 200 points. Always trust the levels.

Now we are sitting in AH right on the key 5284 support level. What does this mean and where do we go from here? Read below for our 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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Don’t miss the Topic Directory - Getting lots of questions that are answered in here.

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Trading Plan

We had another massive range day on very high volume. While we managed to spike off the lows of the day, we ultimately lost quite a bit of ground from yesterday’s rally.

Looking forward, tomorrow we have PPI before the open, along with consumer sentiment and inflation expectations. Additionally, at least two FOMC members will be speaking during the regular session, so be on the lookout for any news or rumors about tariffs that could influence market behavior.

I am receiving some great questions from beginners. This is helping me develop guides for this group as well as the course. More to come but I’ve created a separate channel in the discord just so you can not be shy about bringing those questions to the group. No question is dumb, we grow stronger together!

In fact, I’ve created this single resource as a guide. It is a living document and we will continue updating it. You must be logged into the site to read it:

https://letter.spyoptionsactionablelevels.com/p/strategy-guide-the-basics

As readers know trading after a massive move in either direction is risky.

Trying to predict when trend will break is a fool’s game because the trend can be stronger than you ever realize.

Going with the trend is hard because it has already run so far (or dropped) and move may be close to over.

All you can do is pick your entries carefully and with proper position sizing. Trading out 1-3 DTE or further also helps soften the blow.

Yes it will decrease the amount of profit but will greatly help keep you in a trade long enough to see return.

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