In yesterday’s letter, we wrote:

This is what happened. The levels we set out in our previous newsletter played out beautifully today. We witnessed a dip and defense at the 6862 SPX level overnight, which set the stage for a solid rally of 30 points, hitting our resistance target at 6892 precisely. Following some economic data releases, we dropped but managed to hold at the 6837 support level, allowing for a bounce back to 6862. Post open, we held right at 6837 support and pushed through the critical 6862 level, which led to a successful run through our upside targets at 6867, 6879, 6892, and finally reaching a high of day at 6915. $SPY ( ▲ 0.72% )  $SPX ( ▲ 0.69% )  $ES_F ( 0.0% )  

See how well the levels work?

Now, as we look ahead-are we setup and in position to breakout much higher? What are the key targets that point the way and what supports must hold to keep this possibility open?

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 continued defense of key supports and never losing the ‘must hold’ level kept us looking north for continuation higher. Always trust the levels.

Now we are sitting in AH right on the key 6906 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 was an impressive .7% up day on robust volume, particularly for a Friday.

As we prepare for Monday, we expect a lighter day with only one FOMC member speaking prior to the open and factory orders data being released post-open. Additionally, keep an eye on any developments from the White House regarding actions taken against Iran, as these could impact market sentiment significantly.

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.

Subscribe to Premium to read the rest.