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In yesterday’s letter, we wrote:

This is what happened. We were monitoring the critical 7456 level closely, and unfortunately, it failed to hold. 7493 ES (7456 SPX) tried the bounce but gave it up right before the open. This triggered a steep drop through all our downside targets with high volatility bounces in-between. The market managed to barely recover the 7411 support into and after the close. $SPY ( ▼ 1.24% )  $SPX ( ▼ 1.21% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we assess the aftermath of this significant move - what does the recovery look like? What levels must we bounce back above to regain bullish momentum, and where might we find additional support if the selling pressure resumes?

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 loss of the key 7456 support was a clear signal to look for continuation lower. Always trust the levels.

Now we are sitting in after hours right on the key 7420 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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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’s session presented a massive 1.2% decline, driven by elevated volume, indicating strong selling pressure.

Looking ahead to tomorrow, we have manufacturing and services PMI data being released right after the open, followed by new home sales. Additionally, it’s important to keep an eye on geopolitical developments, particularly from the White House on tariffs or the Middle East, as they could influence market sentiment and volatility.

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 don’t have to 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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