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In yesterday’s letter, we wrote:

This is what happened. The market opened lower after losing the critical 7518 level overnight, which triggered a cascade through key supports. We saw a drop to 7505, followed by 7493, then further down through 7469, 7456, and finally hitting a low of day at 7431.26 at the opening bell and right at our 7430 downside target. Then we chopped sideways between the lows and 7505/7493. $SPY ( ▼ 0.99% )  $SPX ( ▼ 1.01% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we close out the week with a significant pullback, where do we go from here? What levels must we hold to initiate a recovery, and where does support lie below?

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 loss of 7518 was the trigger and for those awake or alerted (via price alerts) knew the direction and magnitude of the loss to come. Always trust the levels.

Now we are sitting in after hours right on the key 7454 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’s 1% move lower on high volume indicates strong selling pressure, particularly for a summer Friday.

Looking forward to Monday, we have a lighter schedule for reports and speeches, but be vigilant for any announcements or developments from the White House over the weekend that could impact market sentiment.

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 don’t have to 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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