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In yesterday's letter, we wrote:

This is what happened. Overnight, we held the 6103 level as anticipated, setting the stage for a strong opening. We saw an impressive initial blast to 6133, which marked a high of the day (6128.18). However, we faced a rejection from that level, leading to a choppy session. Eventually, we managed to defend the critical support level of 6093, which was essential for next week’s sentiment.

See how well the levels work?

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Now that we have experienced a one-day sell-off on higher volume, where do we go from here? The market's reaction to previous highs and the ability to hold key support levels will be crucial indicators for upcoming sessions. The action today highlights the importance of defending critical levels to maintain upward momentum.

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 key hold of the 6103 overnight led to a 30 point launch at the open. Then it was all chop between the levels. Always trust the levels.

Now we are sitting in AH right on the key 6097 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

Looking ahead, Monday appears to be a light day on the calendar with only new home sales scheduled for release. Traders should also be vigilant for any administration or immigration-related news over the weekend, as these events could impact market sentiment and trading conditions. Always keep an eye on macroeconomic factors that may influence the broader market landscape.

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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