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In yesterday's letter, we wrote:

This is what happened. The market lost the critical 5825 level overnight, which triggered a short bias. However, we defended the 5807 level exactly, which allowed for a rally that pushed all the way up through 5838, with multiple defenses of that level throughout the day. Ultimately, we reached a high of 5878, just shy of the 5884 target before selling off into the close. We barely managed to hold onto 5838 by the end of the session. $SPY ( ▼ 0.68% )  $SPX ( ▼ 0.67% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now that we have navigated this range, where do we go from here? What supports must we hold to avoid further downside, and how can we capitalize on potential upward movements?

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 5825 must hold level triggered the solid short entry overnight and then the reclaim there and multiple defenses right on 5838 were the long trigger to run all the way to 5878, just below the 5884 target resistance. Always trust the levels.

Now we are sitting in AH right on the key 5848 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 was a decent-sized range day, consolidating on very strong volume.

As we head into tomorrow, with it being Friday and a holiday weekend approaching, we can likely expect much lighter trading volumes. However, we do have at least three FOMC members scheduled to speak during the session, alongside a new home sales report, which could influence market dynamics.

Keep an eye on those key levels and trade carefully as we move into the weekend.

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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