In yesterday's letter, we wrote:

This is what happened. Overnight and into the open the key 5656 defended and rallied up to a high of 5691, surpassing the 5684 target. The 5656 held up remarkably well throughout the trading day, serving as both support and resistance. We did experience a brief dip to a low of 5644, which was close to the 5641 target but quickly bounced back. In the afternoon we defended 5656 and bounced to 5674 - right at our 5673 target. $SPY ( ▲ 0.11% )  $SPX ( ▲ 0.09% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now that we've defended the key support throughout choppy consolidation, where do we go from here? What risks are at play and what does volume tell us? What level above would be a long trigger to squeeze higher and what level below would risk a deep cut?

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 levels played out great despite the choppy consolidation. The focus on 5656 was crucial, and traders who played the bounces above it likely found success throughout the day. Always trust the levels.

Now we are sitting in AH right on the key 5661 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.

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 was a nice consolidation day characterized by lower volume, which is typical for Fridays.

Looking ahead to Monday, we have the inflation expectations report and an FOMC member scheduled to speak. Additionally, stay tuned for any trade deal news that may come out from the administration, as even rumors can greatly impact market sentiment.

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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