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In yesterday’s letter, we wrote:

This is what happened. Today was characterized by a decent consolidation bounce. Initially, we were unable to reclaim the 7704 level, leading to a decline that took us down through 7685, with the SPX hitting a low of 7669.66. However, after this initial setback, the market found support at 7704 and rallied back, pushing us up through the 7741 level to reach a high of 7754.15, right at our 7752 resistance target. $SPY ( ▲ 0.29% )  $SPX ( ▼ 3.76% )  $ES_F ( 0.0% )

See how well the levels work?

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Now, as we move forward, the question remains: can we maintain this upward momentum, or are we preparing for another pullback? What are the levels to watch for potential reversals or breakouts?

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 inability to hold above 7704 was a key indicator and was decent setup. The eventual run all the way up to key resistance target at 7752 was also the levels at work. Always trust the levels.

Now we are sitting in after hours right on the key 7742 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.

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Trading Plan

Today was a decent consolidation bounce on good volume.

Looking ahead, tomorrow presents a lighter day for speeches, but we will have key reports on production and updates from the IMF meetings. These could influence market sentiment, and we should be prepared for any volatility that may arise as a result.

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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