In Tuesday’s letter, we wrote:

This is what happened. The levels played out tremendously well as the morning session had multiple dips and defenses off our key levels. After hitting a high at 5935, we defended at 5879 which allowed us to run up to 5909. However, after hitting this target, we saw a rejection and a subsequent sell-off below the critical holding level of 5864. This triggered our short strategy and led to a sell-off that brought us down to a low of 5829, just above our target of 5827.

See how well the levels work?

After this dip, the market chopped and grinded higher for the rest of the session, ultimately closing just above the 5864 level.

Now, after yet another high volatility, wide range dip and defense where do we go from here? Where must we hold tomorrow to prevent a full on collapse?

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, both the long entry played out right at the 5879 level as well as the short entry below 5864. Always trust the levels.

Now we are sitting in AH right below the key 5877 resistance 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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Trading Plan

For tomorrow, we have a nice red dip and defense candle on high volume, which places a doji at the lows of the current range. This indicates potential indecision and could signal a reversal or continuation depending on tomorrow's action.

We are also awaiting PMI in the AM as well as at least one FOMC member speaking during the session.

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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