In yesterday’s letter, we wrote:

This is what happened. Today, we experienced a consolidation day where the market tested key support and resistance levels without making significant moves. We started the day with an overnight dip to 6842, which was identified as a long dip and defense level. The market responded well, pushing up to 6861, and even spiked to 6870 following the jobs data release. However, despite this initial strength, we were unable to maintain the 6854 level into the open, leading to a consolidation phase for much of the day. The market then dipped to a low of 6827 before managing to recover to close near the 6854 support level, leaving us virtually flat for the day. $SPY ( ▲ 0.07% )  $SPX ( ▲ 0.11% )  $ES_F ( 0.0% )  

See how well the levels work?

Now, as we prepare for tomorrow, we must ask ourselves: where do we go from here? What levels should we focus on, and how can we position ourselves for a drop below key supports or a breakout higher?

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 overnight defense at 6842 and multiple rejection of 6861 resistance are examples of the levels at work. Always trust the levels.

Now we are sitting in AH right on the key 6854 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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Trading Plan

Despite the day’s flat consolidation, the overall levels behaved as expected, reaffirming the importance of watching the key supports to hold. Today’s low volume suggests that many traders are waiting for clearer signals before making their next moves.

Looking ahead, we have key consumer sentiment and inflation expectations data due post-open tomorrow. These reports could provide the catalysts needed for the market to break out of its current range, so it’s essential to keep an eye on these developments.

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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