In yesterday’s letter, we wrote:

This is what happened. After defending the crucial levels of 6057/6065 in after-hours trading, we rallied and pushed through 6071, ultimately reaching a high of 6120.91, just surpassing the 6117 level mentioned.

See how well the levels work?

The market reacted positively for most of the day, allowing us to hit the targets outlined in yesterday’s letter. However, the late-session volatility serves as a reminder of how quickly sentiment can shift.

Following some tariff news, we gave back some gains but managed to hold the key 6017 level, closing at around 6042.

Now, that we tested higher waters and rejected swiftly, where do we head from here? What does the action into the close and levels we were able to defend tell us?

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 defense of 6065 and subsequent push up through our targets was a key leading indicator of the move higher. Always trust the levels.

Now we are sitting in AH right under the key 6043 resistance 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.

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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 was a wide-ranging down day on high volume, particularly for a Friday. Keeping an eye on market reactions to the upcoming events will be crucial as we navigate through next week.

Looking ahead, Monday is set to be significant with OPEC meetings and manufacturing PMI reported right after the open. Additionally, we have at least two FOMC members speaking, one before & after the close. These events could introduce further volatility, and it’s essential to remain cautious and stick to the levels we’ve established.

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.

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