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In yesterday’s letter, we wrote:

This is what happened. Today was defined by significant volatility as we navigated both bullish and bearish scenarios. After a strong bounce in after-hours trading, we managed to stay above the critical 7363 SPX level overnight. This strength allowed us to push through to 7401 at the opening bell to 7416, reaching a high of 7419.08 before we faced resistance. However, the market quickly turned as we lost the critical support of 7363, leading to a downward move through 7349, 7337, and ultimately hitting the low of day at 7323.5-EXACTLY at our 7323 downside target. Following this dip, we managed to recover back above 7363 and attempted to rally but settled into a chop around this level into the close. $SPY ( ▲ 0.15% )  $SPX ( ▼ 0.01% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we assess the market’s position, we must ask: where do we go from here? What levels do we need to defend/reclaim to feel good about longs, and how do we react if we lose these supports?

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 7363 key support was the story today and we had reactions on both sides of it. Always trust the levels.

Now we are sitting in after hours right on the key 7379 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’s session ultimately closed flat, but the lighter volume and massive range suggests uncertainty as traders digest the data and news ahead.

Looking ahead, tomorrow presents consumer sentiment and inflation expectations data, along with at least one FOMC member speaking during the session. These events could add further volatility to the market, so we need to remain vigilant and prepared to adjust our strategies accordingly.

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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