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In yesterday’s letter, we wrote:

This is what happened. The key levels we outlined played a critical role in today’s trading session. Overnight we dropped to the 7465 support level, which set the stage for a strong morning rally that pushed through 7479, 7493, and 7507, 7528and nearly to 7549 eventually reaching a high of 7540.75. However, the momentum was short-lived as we eventually lost these gains and retested the critical 7465-7460 zone. This led to a significant drop down to a low of 7427.55, just below our downside target of 7433, before we managed to recover some ground and close above 7474. $SPY ( ▼ 0.13% )  $SPX ( ▲ 0.0% )  $ES_F ( 0.0% )  

See how well the levels work?

Sound familiar?

Over 4 million people have had the same lightbulb moment.

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Now, as we reflect on today’s volatility, it’s vital to consider where we stand moving forward. Are the supports beneath strong enough to hold? What is the next resistance we must break to regain bullish 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 defense of 7460, the eventual loss of it, and the final breakthrough into the close were all key entries both long and short just from being aware of the key support. Always trust the levels.

Now we are sitting in after hours right on the key 7465 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.

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Don’t miss the Topic Directory - Getting lots of questions that are answered in here.

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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 trading exhibited high volatility, characterized by a sharp rise that could not be sustained.

Looking ahead to Monday, we have Services PMI data along with at least one FOMC member scheduled to speak during the session. These events could introduce additional market dynamics that traders should be aware of.

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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