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In yesterday's letter, we wrote:

This is what happened. Unfortunately, we lost the critical 5359 level roughly three hours before the regular session opened, leading to swift downside action and the loss of all downside targets. The market continued to decline throughout the session, ultimately closing at a low of 5069.90, marking a significant drop. $SPY ( ▲ 0.72% )  $SPX ( ▲ 0.74% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now that we fell another 6% on the highest volume in years, is capitulation here? How will we know? What levels below and above will guide our way?

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 critical levels of 5359 and the Aug 5th low brought amazing entries - one to short the loss of support and one to long the defense of support. Always trust the levels.

Now we are sitting in AH right on the key 5060 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

The levels played out as anticipated, and while there were opportunities for long entries, the overall trend was undeniably bearish, culminating in a massive 6% down day on the highest volume we’ve seen in years.

Looking ahead, Monday brings the potential for more volatility with one FOMC member scheduled to speak during the regular session. It's also important to keep an eye on any news regarding negotiations with various countries and potential tariff deals that could influence the market's direction.

As we navigate these turbulent times, remember to stay disciplined and adhere to your trading plans. The market can be unpredictable, but with the right strategies and a keen eye on key levels, we can find opportunities even in challenging conditions.

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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