In yesterday’s letter, we wrote:

This is what happened. After a brief attempt at a breakout above 6100, we faced a significant reversal due to data and tariff concerns. The market dropped hard, and once we hit the 6052 level, we never saw the necessary defense to bounce back 5 points above. Losing 6037 triggered the anticipated direction, resulting in a move down to a low of 6019.96.

See how well the levels work?

This isn’t traditional business news

Welcome to Morning Brew—the free newsletter designed to keep you in the know on the business news impacting your career, company, and life—in a way you didn’t know you needed.

Note: this isn’t traditional business news. Morning Brew’s approach cuts through the noise and bore of classic business media, opting for short writeups, witty jokes, and above all—presenting the facts.

Save time, actually enjoy business news, and join over 4 million professionals reading daily.

Check it out

This note was written up at 6100 - just before hitting the high of day 6101.28.

Now that we had a big rejection at 6100, where do we go from here? Where must we reclaim to put an end to the selling and where do we drop even harder?

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 rejection of 6100 and subsequent loss of 6052 and 6037 were key to give us direction to move down below 6024 downside target. Always trust the levels.

Now we are sitting in AH right on the key 6027 support level. What does this mean and where do we go from here? Read below for my 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 featured a major 1% move down on higher volume, particularly for a Friday.

As we look ahead to Monday, we have manufacturing PMI reports scheduled just after the open, along with speeches from at least two FOMC members later in the day. These events could create additional volatility, so it’s vital to stay alert and prepared for potential market movements.

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.

Subscribe to Premium to read the rest.