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In yesterday's letter, we wrote:

This is what happened. As anticipated, the levels played out effectively as we dipped below and defended the key 5952 level multiple times. However, once we finally lost that level in the afternoon, it triggered a cascade of selling that led us down through all downside short targets to a low of 5858.78.

See how well the levels work?

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This is a reminder of the importance of these key levels and the need to stay vigilant during volatile sessions. When we saw the breakdown below 5952, it became clear that the downside targets we mentioned (5939, 5927, 5912, and 5894) were in play.

Now that we had a major 1.5% down day on the highest volume of the year, do we have capitulation? Where must we reclaim to feel good about longs? Where must we hold to prevent even deeper sell? If we do sell further, what is the key downside target?

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 break of 5952 was critical. We fought with it for much of the day but once it was lost in the afternoon we sold off quick. Always trust the levels.

Now we are sitting in AH right on the key 5869 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.

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 was a massive 1.5% down day, marked by the highest trading volume of the year. This kind of activity indicates strong selling pressure and the potential for further volatility ahead.

Looking ahead, tomorrow we have PCE data being released before the open, along with Chicago PMI and at least one FOMC member speaking post-open. These events could significantly influence market sentiment, so we should keep a close eye on how traders react to this data.

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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