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In yesterday’s letter, we wrote:

This is what happened. SPX successfully held above the critical 7791 level overnight. Then, after the opening bell, we saw the index reach a high of 7810.01, testing the key resistance level at 7808. However, we were unable to break through and sustain above that mark, which led to a pullback. The market dropped to retest the 7791 level-unable to hold, dipping to 7777—our designated ‘long dip & defense level’ right at low of day-7776.31! Then we managed to defend and bounce back to 7784, indicating a tight range for the remainder of the session. $SPY ( ▼ 0.2% )  $SPX ( ▼ 0.17% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we head into the next trading day, we must consider whether the recent consolidation will lead to further upside or if we will see more tests of the support levels below. Where must we hold, and where are the next critical levels to watch?

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 hold above 7791 overnight gave direction, but the rejection at 7808 capped the gains and led to a retest of 7777 EXACT. Always trust the levels.

Now we are sitting in after hours right on the key 7779 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.

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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 push higher was rejected and we settled with consolidation right at key supports.

For Monday, we have manufacturing data scheduled to be released prior to the open, and it’s essential to remain alert for any updates from the White House or developments in the Middle East over the weekend that could influence market sentiment.

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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