In yesterday's letter, we wrote:

This is what happened. Today, the levels we closely monitored played out exceptionally well, starting with the strong defense of the 6718 SPX support overnight. This set the stage for a robust rally, especially following the CPI release, which propelled the index past the 6772 breakout level right at the opening bell. The momentum carried us all the way up to the high of day at 6816.13, just shy of our target of 6825. We then defended 6772 several times throughout the day, closing just above it (2 points). $SPY ( ▲ 0.91% )  $SPX ( ▲ 0.88% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we look ahead, the question is whether we can maintain this upward momentum. What levels do we need to defend, and where should we look to take profits?

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 ability to defend 6718 overnight and then reclaim & defend 6772 multiple times was a positive sign, closing the day just above that critical level by 2 points. This demonstrates a solid support zone established by buyers stepping in. Always trust the levels.

Now we are sitting in AH right on the key 6769 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.

Trading Plan

Today’s market action resulted in a solid .8% gain on high volume, indicating strong participation from buyers.

As we prepare for tomorrow, we have at least one FOMC member speaking before the market opens, along with existing home sales and consumer sentiment data set to be released post-open. These events could influence market direction, so we must keep a close eye on how they unfold.

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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