In yesterday’s letter, we wrote:

This is what happened. We saw a dip overnight, only to defend right at our 6845 long ‘dip & defense’ level before surging 25 points up to our 6869 target. After the opening bell, the market bounced to high of day 6879 before chopping between 6856 and 6869 before dropping and consolidating between 6827 (low of day 6833) and 6856. Finally into the close we recovered several levels closing well north of 6856. $SPY ( ▼ 0.26% )  $SPX ( ▼ 0.28% )  $ES_F ( 0.0% )  

See how well the levels work?

Now, as we look ahead, it’s crucial to monitor how these levels react in upcoming sessions. Can we hold these supports, or are we setting up for a deeper pullback? What key retracement levels should we keep in our crosshairs?

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 continued defense off lower supports and rejection to higher resistances are clear examples of the support & resistances at work. Always trust the levels.

Now we are sitting in AH right on the key 6862 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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Trading Plan

Today was a modest .25% down day on lower volume, which suggests that the market is still finding its footing.

Tomorrow, we have GDP data prior to the open, along with Manufacturing and Services PMI released post-open, and a new home sales report, coupled with two FOMC members speaking throughout the session. These events could inject volatility into the market.

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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