In yesterday’s letter, we wrote:

This is what happened. After losing the critical support at 6946 overnight, we saw a sharp sell-off that brought the SPX down to 6888 precisely, right at our mentioned downside target. However, buyers stepped in, allowing a bounce all the way back to 6946 by the open. As we moved into the regular session, we saw some consolidation around that level. Unfortunately, we couldn’t hold 6946, leading to another drop back towards 6888. This time, we bounced slightly higher at 6893 before making a final push back to 6946, where we chopped into the close. $SPY ( ▲ 0.5% )  $SPX ( ▲ 0.54% )  $ES_F ( 0.0% )  

See how well the levels work?

Now, with back-to-back tests of critical support levels - where do we go from here? What levels will we need to watch closely to determine the market’s next 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.

Today’s loss of 6946-overnight and in regular session triggered two strong moves right to key 6888 support before defending and running all the way back. Always trust the levels.

Now we are sitting in AH right on the key 6934 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.

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Trading Plan

Today’s session featured a significant dip and defense, particularly notable for a Friday, with high volume backing the moves.

As we look ahead to Monday, we have the Manufacturing PMI data due post-open and an FOMC member scheduled to speak mid-day. These events could certainly influence market dynamics, so it’s essential to stay alert and adjust our strategies as necessary.

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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