In yesterday’s letter, we wrote:

This is what happened. The overnight session proved to be pivotal as we held the critical level of 5852 and reclaimed 5874, setting the stage for a massive rally that took us all the way to a high of 5935.52, right at our first stretch target.

See how well the levels work?

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After hitting that high, we entered a period of sideways chop and gradually drifted lower selling off the bounce.

Now that we had the whiplash reaction to FOMC sell-off, the bounce and subsequent sell, what comes next? Will we build a base here or are we destined for lower? What levels guide the way?

More in the trade plan below.

Below, we’ll cover the actionable levels, how I played them today and what they mean for the next session.

Levels were great. Trading futures would have been the ticket overnight with that run, we defended where we had to, took out the 5874 and ran to the target + 52 cents! Always trust the levels.

Now we are sitting in AH right on the key 5873 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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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

The big bounce was coupled with very high volume, signaling strong market participation. Tomorrow will be key in determining whether we can hold these gains or if we are destined to move lower.

For tomorrow, keep an eye on at least one FOMC member speaking along with the release of PCE data and consumer sentiment data post-open. These events could further influence market direction and trading strategies.

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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