In yesterday’s letter, we wrote:

This is what happened. Overnight we had a dip and defense at the critical 6840 level, which initially pushed the SPX as high as our key 6888 target. However, after multiple attempts to hold 6840 support, we ultimately lost it, triggering a cascade of selling that took us down to 6813 and then further to 6796 and 6781. We reached a low of 6770.78, right at our downside target of 6769, before bouncing back to close at 6828. $SPY ( ▼ 0.56% )  $SPX ( ▼ 0.56% )  $ES_F ( 0.0% )  

See how well the levels work?

Now, as we transition from a bullish bias to a more cautious stance, where do we look for potential support, and what levels will dictate our next moves?

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 6840 was key sign we were heading lower, and the flush to 6769 final downside target was precise. Always trust the levels.

Now we are sitting in after hours right on the key 6820 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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Trading Plan

Today’s trading saw a significant .6% drop on heavy volume, indicating strong seller presence in the market.

As we head into tomorrow, keep an eye on the major employment and retail sales data due before the open, along with insights from at least four FOMC members speaking throughout the session. Additionally, geopolitical news, particularly from the Middle East, could have an impact on market sentiment and volatility. Stay alert and ready to respond to these developments.

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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