In yesterday’s letter, we wrote:

This is what happened. The levels played out tremendously well! We opened the day strong, holding the critical 5902 level, which was key throughout the session. Following some initial dips, we blasted up directly to the 5997 target after the tariff judgment ruling. However, as we drifted lower into the open, we did break 5902, which led us down to the 5887 level and ultimately to a low of 5873 before defending and making a strong comeback as we defended 5902 into the close. $SPY ( ▲ 0.99% )  $SPX ( ▲ 0.96% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we move forward, we need to be cautious. While we had a strong rally, the inability to hold onto overnight gains is concerning. Potential short opportunities still lurk if we see any failure at these key levels.

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 defense of 5902 leading to the run directly to the 5997 target as well as the continued defense of 5873, 5887 and 5902 was on point. Always trust the levels.

Now we are sitting in AH right on the key 5905 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.

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Trading Plan

Today was a wide-ranging consolidation day on decent volume, higher than the prior two sessions. However, we could not hold onto the overnight gains, which raises some concerns about the sustainability of this upward trend.

Looking ahead to tomorrow, we have several important data points to watch, including the PCE price index, personal income and spending data, consumer sentiment, inflation expectations, and remarks from at least two Fed members. These events could significantly impact market dynamics, so it's essential to stay alert and adapt accordingly.

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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