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In yesterday's letter, we wrote:

This is what happened. Today was a remarkable day in the markets, characterized by a rare 240-point range without a major catalyst like an FOMC announcement. We opened strong, propelled by a robust overnight rally following NVDA’s stellar earnings, allowing us to reclaim the critical 6691 level. This setup was pivotal for pushing higher, and indeed, we saw a further rally fueled by encouraging employment data, reaching a high of 6772.75 on the ES futures, which is EXACTLY (within 1/4 point) of our final upside resistance target at 6753 SPX.

However, the exuberance was short-lived in the regular session. After hitting the high of the day at 6770 SPX, we began to give back gains rapidly. The market fell through ALL crucial support levels, starting with 6691 and then down to 6590, ultimately closing at a low of 6534.05, right at our final downside support target of 6536. It was a classic case of whipsaw action that left traders on edge, underscoring the importance of the levels we provided. $SPY ( ▼ 1.08% )  $SPX ( ▼ 1.07% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, with a significant decline in the rearview mirror, the question becomes: what’s next? Can we reclaim the needed levels to shift sentiment, or are we likely to see further downside?

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 fact that we called the very top target prior to the open and then nailed the close (6536) and it was all based on key levels 6691 and 6590 reclaiming/rejecting is showing how the market reacts to the key supports/resistances. Always trust the levels.

Now we are sitting in AH right on the key 6530 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’s price action was marked by the highest volume we’ve seen since the April Tariff day, a clear indication of heightened market activity and volatility.

As we look ahead to tomorrow, we have options expiration (OPEX) day alongside PMI data, revised consumer sentiment, and inflation expectations, plus at least four FOMC members scheduled to speak. These events will be critical in shaping market direction, so it’s vital to keep a close eye on them for how we react after today’s major see-saw sell.

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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