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In yesterday’s letter, we wrote:

This is what happened. Overnight we witnessed a critical dip and defense at the 7491 level, which was our must-hold short location. After successfully defending this level, we saw a strong bounce that then ran out of steam and led us to retest 7505 into the open. From there, the market rallied impressively throughout the day, breaking through 7522, 7542, and even nearly reaching our target of 7557, peaking at a high of day of 7568.72. $SPY ( ▲ 0.55% )  $SPX ( ▲ 0.58% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we move forward, the question is: can we maintain this upward momentum? What key levels should we focus on to ensure we stay on the bullish side?

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 dip and direct defense overnight of 7491 as well as the 7505 defense prior to and into the regular session opening bell were key indicators of where we were heading. Always trust the levels.

Now we are sitting in after hours right on the key 7569 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 performance was notable, with a solid .6% move higher, albeit on continued lower volume, which may indicate a cautious market. This could suggest that while the bulls are in control, there is potential for volatility ahead.

Looking to tomorrow, we have five FOMC members scheduled to speak throughout the day, which could provide insights into future policy and sentiment. Additionally, keep an eye on news regarding Iran.

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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