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In Wednesday’s letter, we wrote:

This is what happened. The market opened strong but quickly lost the 5876 level, leading to a swift sell-off. The SPX dropped down to a low of 5807.78 before finding support at the critical level of 5824. After initially testing lower levels, we saw a significant bounce that pushed prices back up, eventually reclaiming 5824 and running nearly 60 points higher to then chop and drift lower, still clinging to 5824 by the close.

See how well the levels work?

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In terms of trades, I executed a short on the failure at 5824 when we hit 5819, which allowed me to ride the initial drop down to around 5809. However, after that trade, I was done for the day. I mentioned in the chat that reclaiming 5824 at 29+ would be significant, and indeed, that set us up for a strong nearly 60 point rally.

More in the trade plan below.

Below, we’ll cover the actionable levels, how I played them today and what they mean for the next session.

Levels were spot on as we navigated the volatility. After the drop below 5876, the dip & defense at 5824 was crucial, and from there, we managed to recover nearly 60 points before selling off again. Always trust the levels.

Now we are sitting in AH right on the key 5817 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.

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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

This sell-off was notable, marking the highest volume of the year. As we head into Monday, the economic calendar looks lighter, but I recommend keeping an eye on any global news that could impact market sentiment over the weekend. Let's prepare for what could be another interesting week ahead!

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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