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In yesterday’s letter, I wrote:

This is what happened. Yesterday’s session was incredibly volatile, yet the levels held strong. After defending the critical 5546 level overnight, we opened near 5608, quickly ramping up to a high of 5646, surpassing my target of 5643 before retreating. Importantly, we managed to defend the 5582 mark, which I had highlighted as key. The market action confirmed the importance of these levels!

See how well the levels work?

Now that we have tested and defended key support levels, where do we go from here? What targets should we be watching to gauge the next steps, and how does volume impact our outlook?

More in the trade plan below.

Sneak peek into our morning update for premium subscribers, note the key levels of needing to hold 5582 now and that we could see 5643. Then on retest we did NOT lose 5582.

The $SPY 5DTE 564 calls ran from a low of $51 to $93 for 82% gain.

I briefly traded these calls, entering after we defended the 5582 SPX level on the drop. I was able to catch a nice move. I took 50% off quickly and let the rest run, but ultimately stopped out for profit. My intention was to swing these for a bigger move in the coming sessions based on the defense I was observing but that did not happen. 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.

The levels worked perfectly today, with a direct defense of the must-hold 5546 overnight, leading to a strong opening at 5608 and a peak at 5646 before the drop back down to defend at 5582. Always trust the levels!

Now we are sitting in AH right above the key 5599 support level. What does this 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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Trading Plan

Here is a current check of the daily:

This includes all the way back to 1/5 & all overnight action.

On the daily, we witnessed a consolidation in a massive 100+ point range, now sitting comfortably in the lower middle of this range.

Quick volume check:

The volume was significantly higher than the previous 14 sessions, indicating strong market interest. For tomorrow, we have the PCE index prior to the open, followed by PMI and consumer sentiment data during the session. Keep an eye on these events as they may trigger further volatility or directional movement.

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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