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In yesterday’s letter, we wrote:

This is what happened. The market lost its grip on 6323 overnight, and once that floor gave way, it was a one-way trip down the staircase. As expected, we slid through 6311 and 6287, couldn’t find footing at 6272, and even tumbled past 6237. The selloff nearly hit the final downside target of 6209—missing it by just 3 points.$SPY ( ▲ 1.07% )  $SPX ( ▲ 1.13% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now that we have experienced such a significant move down, where do we go from here? What levels should we watch for potential reversals, and what does the volume tell us about the strength of this move?

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.

Levels played out incredibly well as we had the loss of 6323 which triggered all downside targets to hit all the way to within 3 points of the final one provided yesterday. Always trust the levels.

Now we are sitting in AH right on the key 6235 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.

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Trading Plan

The overall market today saw a significant decline, with a massive 1.6% drop on even higher volume than previously. This indicates strong selling pressure and bears’ control over the market.

Looking ahead to Monday, we have a very light day in terms of scheduled reports, but we should keep an eye on any trade deal news over the weekend, especially as the market reacts to the August 4th deadline. The sentiment heading into next week will be crucial, so stay tuned for any developments that may 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 can not 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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