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In yesterday's letter, we wrote:

This is what happened. During a strong overnight session, we saw a dip and defense of the 6345 SPX level, which allowed us to run all the way up to 6397 resistance before facing a rejection and a sharp sell-off. This continued through the regular session all the way down to the key 6311 support level (low of day 6310.32) and then recovered nicely 30 points to close flat on the day. $SPY ( ▲ 0.78% )  $SPX ( ▲ 0.78% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now that we’ve seen a bit of volatility, where do we go from here? What levels should we keep an eye on for potential support or resistance, and how might tomorrow’s events shape our trading?

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 levels were quite on point with the overnight dip & defense and run exactly to strong resistance at 6397 and then the defense right at 6311 strong support to run 30 points into the close. Always trust the levels.

Now we are sitting in AH right on the key 6351 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

Today printed a flat doji candle, indicating indecision in the market, but it was on stronger volume, suggesting we may have some underlying strength.

For tomorrow, we have a lighter day in terms of scheduled reports and events, but at least one FOMC member will be speaking, which could bring additional volatility.

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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