In yesterday's letter, we wrote:

This is what happened. The SPX levels we were monitoring performed as expected, dipping and holding above the critical 6889 support overnight. This triggered a bounce all the way back to 6914. However, during the regular session, the market entered a phase of consolidation. We spent the day chopping between 6914 and 6925, which highlight the importance of the support & resistance levels and current price action. $SPY ( ▼ 0.01% )  $SPX ( ▲ 0.01% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we await key economic indicators, the question is: Can we break out of this consolidation phase? What levels will dictate our next moves both up and down?

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.

Both the overnight defense at 6889 and the consolidation between 6914 and 6925 today are key demonstrations of the levels at work. Always trust the levels.

Now we are sitting in AH right on the key 6929 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.

If you are enjoying this letter, consider sharing with a friend! We even have a referral program where you can earn free subscription time for referring others that sign up for a paid subscription.

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 primarily a consolidation day as traders awaited catalysts, marked by increasing volume. This indicates that participants are gearing up for significant moves as we approach important data releases.

Looking ahead to tomorrow, we have key employment data due before the market opens, along with preliminary consumer sentiment and inflation data to follow. Additionally, at least two FOMC members will be speaking throughout the day, which could provide further insight into monetary policy and impact market sentiment. Finally, it goes without saying that anything foreign of domestic coming out of the administration could change sentiment on a dime.

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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