In yesterday’s letter, we wrote:

This is what happened. The market was under pressure as expected, losing the crucial 6783 support level overnight. After a brief bounce, we were unable to recover this level, leading to a sharp decline down to the 6738 support. Unfortunately, we couldn’t hold that level during the regular session, resulting in a further drop through 6722, ultimately reaching a low of 6711.56 before attempting to recover. Then we rejected 6766 multiple times from below to close at 6738. $SPY ( ▼ 1.31% )  $SPX ( ▼ 1.33% )  $ES_F ( 0.0% )  

See how well the levels work?

As we reflect on today’s volatility, caution is paramount. Where do we go from here? What levels should we focus on reclaiming to signal a potential reversal?

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 6783 and rejection from below led to a massive drop. The rejection of 6766 (multiple times from below) as well as the support at 6738 are all key examples of the levels at work. Always trust the levels.

Now we are sitting in after hours right on the key 6730 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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Trading Plan

Today’s trading saw a significant 1.3% decline on high volume, indicating strong selling pressure.

As we look ahead to Monday, the absence of major scheduled reports or speeches means that market sentiment could be swayed by external factors, particularly any developments in the Middle East. Additionally, all eyes will be on the upcoming CPI report on Wednesday, which could further influence market dynamics.

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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