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In yesterday’s letter, we wrote:

This is what happened. The failure to hold the 6471 level set the stage for multiple tests of 6446 from below, which ultimately could not hold. This led us to a significant drop below 6429 and 6415, setting off a major flush down to a low of 6356.08 through all of our downside targets including 6389. $SPY ( ▼ 1.71% )  $SPX ( ▼ 1.67% )  $ES_F ( ▼ 1.93% )  

See how well the levels work?

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Now, with the market firmly in a downtrend - what levels should we be watching for potential bounces? What points of resistance do we need to reclaim to shift our bias back towards the upside?

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 breakdown of 6471 was a critical signal and confirmed our bearish bias. As we witnessed, the inability to recover these levels pointed clearly downward, leading us to test lower supports. Always trust the levels.

Now we are sitting in after hours right on the key 6360 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 session saw another 1.7% drop on decent volume, indicating strong selling pressure.

Looking ahead to Monday, we have a scheduled speech by Powell at Harvard in the morning, which could influence market sentiment. Additionally, keep an eye on any developments regarding Iran over the weekend for potential impacts on the market.

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 can not 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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