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In yesterday’s letter, we wrote:

This is what happened. The market held the key must hold/short below level EXACTLY in futures overnight (within 1/2 point) before defending. Then in the regular session we gave up that 6883 SPX level. Once we gave up that support, it triggered a swift decline that reached our final downside target at 6799, with a low of day at 6801.79. $SPY ( ▼ 1.08% )  $SPX ( ▼ 1.07% )  $ES_F ( 0.0% )  

See how well the levels work?

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Looking ahead, we need to consider how significant this drop might be. What levels do we need to reclaim to regain bullish momentum, and where are we looking for support below?

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.

Once we lost 6883, the selling pressure was palpable, and we couldn’t recapture even half of the decline before the close. Always trust the levels.

Now we are sitting in AH right on the key 6830 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 session saw a 1% drop on high volume, even surpassing the volume seen during the recent FOMC meeting.

As we look to Monday, we have the Empire State manufacturing index and at least three FOMC members scheduled to speak throughout the day, which could inject further volatility into the market. Stay focused and be prepared to adjust our strategies as needed.

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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