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In yesterday’s letter, we wrote:

This is what happened. The levels played out as expected, with a significant failure at 6383 leading to a drop of 20 points overnight. In the regular session, we failed to defend 6383 yet again, which resulted in a loss of 30 points. Ultimately, we were unable to reclaim this critical level as we approached the close of the trading day. $SPY ( ▼ 0.4% )  $SPX ( ▼ 0.43% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now with a major volatility event on the horizon in the form of Jerome’s Jackson Hole speech - where must we target and hold to prevent further downside and what are next downside targets if we don’t?

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 loss of 6383 was critical as acting as magnet in the AM and failure of 30+ points in the afternoon. Always trust the levels.

Now we are sitting in AH right on the key 6370 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.

If you are enjoying this letter, consider sharing with a friend! We even have a referral program where you can earn free subscription time for referring others that sign up for a paid subscription.

Don’t miss the Topic Directory - Getting lots of questions that are answered in here.

There seems to be some confusion as to the premium subscription and the discord chat. If you are premium and you do not have access to the “Premium Members Only” channels including “members-only” please authenticate yourself in the “bot-request-premium” chat. Or send me a DM in the discord!

Also - if you missed it - join our chat during market hours for premium subscribers. We are now leveraging discord for this. Link is at the very bottom of premium content: Trading Plan section below.

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Trading Plan

Overall, today’s session was choppy, ending down about 0.5% on lower volume.

As we look ahead, all eyes are on the major Jackson Hole speech from Powell, which is set to take place shortly after the market opens tomorrow. Market participants will be eager to assess the implications of his statements, which could significantly impact the trading landscape.

Be prepared for potential volatility as traders digest any insights from the speech and adjust their positions accordingly.

We are receiving some great questions from beginners. This is helping us develop guides for this group as well as the course. More to come but we’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, we’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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