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In yesterday’s letter, we wrote:

This is what happened. The levels played out exceptionally well today, reflecting the market’s volatility. We started by defending the critical 6868 SPX level overnight, which allowed us to rally to 6906. During the regular session, we executed a dip and defense at 6854, propelling us to a day’s high of 6880. However, after a series of defenses, we ultimately lost the 6854 level, which triggered a sharp move down to the low of the day at 6820.69. Fortunately, we have managed to reclaim most of the ground on earnings releases after-hours. $SPY ( ▼ 1.1% )  $SPX ( ▼ 0.99% )  $ES_F ( 0.0% )  

See how well the levels work?

Where to Invest $100,000 According to Experts

Investors face a dilemma. Headlines everywhere say tariffs and AI hype are distorting public markets.

Now, the S&P is trading at over 30x earnings—a level historically linked to crashes.

And the Fed is lowering rates, potentially adding fuel to the fire.

Bloomberg asked where experts would personally invest $100,000 for their September edition. One surprising answer? Art.

It’s what billionaires like Bezos, Gates, and the Rockefellers have used to diversify for decades.

Why?

• Contemporary art prices have appreciated 11.2% annually on average

• …And with one of the lowest correlations to stocks of any major asset class (Masterworks data, 1995-2024).

• Ultra-high net worth collectors (>$50M) allocated 25% of their portfolios to art on average. (UBS, 2024)

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_{*Past performance is not indicative of future returns. Important Reg A disclosures: masterworks.com/cd.}

Now, as we navigate through these fluctuations, the question remains: what will it take to sustain this momentum? Can we maintain our support levels, or are we gearing up for another breakdown?

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 6868 overnight and 6854 intraday were the triggers for massive moves higher. Finally we lost 6854 and the short played out before recovering after hours. Always trust the levels.

Now we are sitting in AH right on the key 6861 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.

Reddit’s Top Stocks Beat the S&P by 40%

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_{Past performance does not guarantee future results. Investing involves risk including possible loss of principal.}

Trading Plan

Today’s session ended with a 1% decline on high volume, but the recoveries in after-hours trading indicate potential resilience in the market.

As we look ahead to tomorrow, we have at least three FOMC members scheduled to speak throughout the session. Their comments could significantly influence market sentiment, so it’s crucial to remain alert and adaptable.

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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