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In yesterday’s letter, we wrote:

This is what happened. After an overnight dip, we managed to defend the critical 7720 level-right at 7748 ES, which allowed us to bounce back to the 7743 resistance EXACT, hitting a high of day at 7742.85. However, we faced some selling pressure after that, leading to a drop where we defended the 7705 support multiple times, demonstrating the market’s struggle to maintain upward momentum. $SPY ( ▼ 0.16% )  $SPX ( ▼ 0.16% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we find ourselves in a consolidation phase, the question arises: what are the next key levels we need to watch? Where must we hold to ensure we continue our upward trajectory, and what is the downside risk if we break below these supports?

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 multiple defenses of 7705 and rejection of 7743 resistance are prime examples of the levels at work. Always trust the levels.

Now we are sitting in after hours right on the key 7712 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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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.

Trading Plan

Today’s market action was a modest .2% move down, to close right above key support.

Looking ahead to tomorrow, we have the important unemployment rate release scheduled before the open, along with at least one FOMC member speaking during the session. These events could have significant implications for market direction and volatility, so we need to be prepared and watch the levels closely.

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 don’t have to 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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