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In yesterday’s letter, we wrote:

This is what happened. The market faced a significant shift today as we lost the critical 7622 level right before the open due to PPI data, which set off a wave of selling. This decline pushed us through key support levels-including 7608 and 7591, hitting a low of 7580.06 before consolidating sideways. The attempts to reclaim the 7608 level were unsuccessful, leading to a close right at 7691. $SPY ( ▼ 0.6% )  $SPX ( ▼ 5.27% )  $ES_F ( 0.0% )

See how well the levels work?

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Now, with the loss of additional key support levels, the big question is: can we stabilize? What level is key to gaining upward momentum and avoiding 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 the key 7622 level right before the open was the tell. Always trust the levels.

Now we are sitting in after hours right on the key 7589 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.

Trading Plan

As we look at today’s action, it was a notable .6% haircut on decent volume, indicating that sellers were indeed in control.

Looking ahead to tomorrow, we have CPI data scheduled prior to the open, along with consumer sentiment and inflation metrics being released shortly after. Additionally, it’s wise to keep a close eye on any updates from the White House, as they may further impact market dynamics.

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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