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In yesterday's letter, we wrote:

This is what happened. The levels played out beautifully as we experienced a dip and subsequent defense overnight. We opened the regular session virtually unchanged but then encountered another significant dip after the open, which brought us down to just 74 cents below the 5888 level listed above. This dip was defended strongly, resulting in an impressive rally of over 85 points, pushing us through all the levels above, ultimately reaching a high of 5972.90.

See how well the levels work?

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Now that we had another dip & defense and a strong rally, where do we head from here? Are fresh all time highs in the picture or are we destined to have a significant dip first? Where must we hold to prevent this scenario?

More in the trade plan below.

Below, we’ll cover the actionable levels, how I played them today and what they mean for the next session.

Levels were great again. The defense at 5888 was spot on and we rallied up 85 points from there. Always trust the levels.

Now we are sitting in AH right below the key 5975 resistance level. What does this mean and where do we go from here? Read below for my 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

As for volume, we saw another solid defense following the dip, which managed to keep us green on lower Friday volume.

For Monday, we have no scheduled reports or speeches, but it’s essential to remain vigilant regarding any incoming administration news and nominations to key positions that could influence market sentiment moving forward. Especially anything involving Russia/Ukraine or Middle East.

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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