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In yesterday’s letter, we wrote:

This is what happened. The market faced significant pressure today as we watched the critical 7778 support level fail. After a brief attempt to defend this level, we saw a spike to a high of 7797.79, right at the 7796 resistance, before the market rejected that level and continued to slide. The loss of 7778 triggered the anticipated short bias, leading us through 7765, 7748, and down to a low of 7731.26, where we finally found some support above the 7725 level and bounced back into the close. $SPY ( ▼ 0.42% )  $SPX ( ▼ 4.75% )  $ES_F ( 0.0% )

See how well the levels work?

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Now, with another support broken and another drop, where do we go from here? What levels do we need to reclaim to feel bullish again, and where should we be cautious about further declines?

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 7778 was key and gave clear direction for the massive drop about to occur. Always trust the levels.

Now we are sitting in after hours right on the key 7763 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.

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 market saw a decent .5% down move, which could have been worse given the earlier dip.

Looking ahead to tomorrow, we have consumer sentiment and inflation expectations data set to be released shortly after the open. These reports could provide insight into consumer behavior and economic outlook, potentially impacting market sentiment and direction.

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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