In yesterday’s letter, we wrote:

This is what happened. We had a strong defense of the 6709 level overnight leading to a nice run towards our first upside target of 6733. The market opened right at this critical resistance level, peaking at a high of day of 6731.94 before experiencing a bit of a drop. After some chop around the 6709 level, we fell to a low of 6693, but the market eventually reclaimed that level, pushing back up to 6722. $SPY ( ▲ 1.18% )  $SPX ( ▲ 1.23% )  $ES_F ( 0.0% )  

See how well the levels work?

Where do we see potential support and resistance moving forward? What is the must hold support to prevent major retracement if there is more volatility ahead?

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 rejection of 6733 and the defense at 6709 were key setups indicating the support & resistance zones. Always trust the levels.

Now we are sitting in AH right on the key 6711 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 flat consolidation day on lower volume, indicating that traders are cautious.

Tomorrow, we have additional employment data and services PMI scheduled, along with at least three FOMC members speaking throughout the day. These events could introduce volatility, and we must remain adaptable and observant to our key levels.

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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