Don’t miss the Topic Directory - Getting lots of questions that are answered in here.

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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.

In yesterday’s letter, I wrote:

This is what happened. The market did indeed retest the 5542 level as anticipated, but I would have preferred a dip down to 5520 before taking off. Instead, we saw a strong bounce from 5542 and blasted upward, reaching a high of 5600.71, just shy of the 5608 target I had mentioned.

See how well the levels work?

Now that we’re back to late August lows, where do we head from here? Are bulls getting tired and where will first major retest take us?

More in the trade plan below.

Below, we’ll cover the actionable levels, how I played them today and what they mean for the next session.

While I was correct about the retest, I held off on trading today since we didn’t get down to my preferred entry level, and I was otherwise occupied. It's essential to remain disciplined and wait for the right opportunities, even on strong trading days.

The levels played out well overall, showcasing the importance of monitoring key resistance and support areas. Always trust the levels!

Now we are sitting in AH right above the key 5593 support level. What does this mean and where do we go from here? Read below for my 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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Trading Plan

On the daily chart, we are brought back to the lows of late August, and it’s worth noting that volume was healthy today, albeit slightly lower than yesterday’s.

Tomorrow appears to be a lighter day in terms of data, but we do have preliminary consumer sentiment and inflation expectations scheduled for release during the trading session. Traders should keep an eye on these indicators as they could impact market sentiment and direction.

I am receiving some great questions from beginners. This is helping me develop guides for this group as well as the course. More to come but I’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, I’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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