Sponsored by

In yesterday’s letter, we wrote:

This is what happened. After dipping and defending the pivotal must-hold 7705 level overnight in futures (7731 ES), we saw a slow but steady rally. By the time the unemployment data was released, we had already grazed the 7735 level, setting the stage for a notable upward move. Then data was released and we launched up to touch 7751, (7777 ES) before experiencing a retest in the regular session. We managed to defend the low of day at 7719.19 RIGHT at our 7719 level, which allowed us to rally back through the important levels of 7735 and 7751, ultimately reaching a high of day at 7763.08. This strong performance concluded just below the 7767 resistance target. $SPY ( ▲ 0.65% )  $SPX ( ▲ 0.51% )  $ES_F ( 0.0% )  

See how well the levels work?

Want chef-crafted, dietitian-designed meals ready in 2 minutes?

Try Factor, America's #1 ready-to-eat meal delivery service.

Made from ingredients you recognize. Whole food. Nothing unnecessary. Let’s eat real.

Get 50% off your first Factor box + Free Breakfast for a year *1 free breakfast item per box for 1 year while subscription active.

Try Factor Now

Now, as we look to the next week, what does Monday hold? Where do we need to hold below us and target above us to keep this trajectory in play? Where could we fall if those levels don’t hold?

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 direct hold of 7705 overnight key leading indicator for the move higher. Always trust the levels.

Now we are sitting in after hours right on the key 7754 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

Today’s move was a strong .62% move higher on average Friday volume, indicating healthy participation in the market.

Despite a lighter schedule for Monday in terms of reports and speeches, traders should keep an eye on any potential news over the weekend, particularly concerning the administration or developments in the Middle East, as well as key CPI release Wednesday.

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.

Subscribe to Premium to read the rest.