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In yesterday's letter, we wrote:

This is what happened. The market opened and we had already lost the 5790 key must hold level. After a bounce, we could not reclaim indicating weakness and the short trade was still on, falling further, hitting all downside targets listed including 5739. We could not hold there so we fell all the way to 5711.64. After a bounce we closed right on our final target of 5739.

See how well the levels work?

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Now that the bounce failed and we have dropped to new near-term lows, where do we go from here? What level must hold now to prevent a much much deeper cut and where must we reclaim to light this rocket higher?

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.

Levels played out great. Once we lost the crucial 5790 level, it served as a clear signal to shift our focus to the downside targets that were laid out in the previous letter. We hit all of those targets and more and closed right on the final 5739 target. Always trust the levels.

Now we are sitting in AH right on the key 5760 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.

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

Overall, it was a significant day marked by a 2% decline in the SPX on high volume, which indicates strong selling pressure.

Tomorrow is action-packed with employment data set to be released prior to the market open, along with four FOMC members speaking and even Powell and Trump during the regular session. Traders should brace for potential volatility as these events unfold.

I am receiving some great questions from beginners. This is helping me develop guides for this group as well as the course. More to come but I’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, I’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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