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In yesterday's letter, we wrote:

This is what happened. Today, the levels we monitored played out exceptionally well. We initially saw a dip and defense at 6669 overnight allowing the market to rally up to our target of 6707. Later in the regular session, we successfully reclaimed the 6684 level, which facilitated another surge to the high of day at 6709.34. However, after losing both 6684 and 6668, the market fell sharply, hitting a low of 6593.99 right at the critical 6595 support before bouncing back to close at 6629. $SPY ( ▲ 0.57% )  $SPX ( ▲ 0.53% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we navigate through this volatility, we must keep a close eye on the supports and resistances. What levels can we confidently trade off? What must we see to regain bullish momentum after today’s downturn?

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 at 6669 to run to 6707 and failure of critical supports to fall to 6595 support (6593.99 low of day) before bouncing were key. Always trust the levels.

Now we are sitting in AH right on the key 6620 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 saw a significant .6% down move on extremely high volume, indicating strong selling pressure.

Looking ahead to tomorrow, it’s options expiration day, which can often lead to increased activity and potential volatility. Additionally, at least one FOMC member will be speaking during the regular session, which could further impact market sentiment and dynamics. It’s essential to stay alert and prepared for rapid changes as we navigate these upcoming events.

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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