In partnership with

In yesterday’s letter, we wrote:

This is what happened. We lost the must-hold level of SPX 6757 overnight. After an initial bounce, we faced rejection at this level from below (confirmation), which set the stage for a significant drop through our support levels of 6743, 6729, and 6718. The final downside target listed was 6668, which we nearly hit exactly at low of day 6670.4. $SPY ( ▼ 1.52% )  $SPX ( ▼ 1.52% )  $ES_F ( 0.0% )  

See how well the levels work?

How One Wellness Brand Is Helping America Sleep Better

You know the importance of sleep, but actually getting enough is easier said than done. One wellness brand decided to study the problem and whether CBD could help.

CBD users have long reported feeling calmer and sleeping better, whether taking the compound by itself or with related hemp-derived compounds like CBN and THC. But rumor isn’t research, so CBDistillery conducted two sleep studies: a 2021 study into CBD and CBN, and a 2023 study with technology app Releaf into CBD, CBN and THC.

Study participants who took CBD and CBN reported falling asleep easier and sleeping an hour longer per night, on average. Study participants who took THC as well as CBD and CBN reported improved quality of sleep and waking up more refreshed the next morning.

Want to experience better sleep and still wake up refreshed? Try CBDistillery’s sleep solutions for yourself and save 25% with code SLP25.

Start Sleeping Better

Now, with the market showing signs of weakness, what are the next levels to watch? What levels are important to recover above us or face further downside?

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 6757 and the retest and confirmation of rejection from below were key signs that we were heading lower. Always trust the levels.

Now we are sitting in after hours right on the key 6675 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 massive 1.5% drop on heavy volume signals a strong presence of sellers in the market. It’s crucial to remain cautious as we navigate this downturn.

Looking ahead to tomorrow, we have GDP and PCE data scheduled for release before the open, along with key JOLTS job numbers to follow. Consumer sentiment and inflation expectations will also be in focus. Additionally, keep a watchful eye on geopolitical developments in the Middle East and Iran, as these factors could significantly impact market dynamics.

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.

Subscribe to Premium to read the rest.