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In yesterday’s letter, we wrote:

This is what happened. Today, the market faced significant selling pressure as we were unable to hold the critical 7748 level, which we identified as pivotal for bullish momentum. After a brief rejection from below that level an hour into the session, the selling intensified, leading to the breakdown of 7726. This ultimately triggered a rapid flush through our key downside targets of 7711, 7700, 7676, and 7651, culminating in a low of day at 7631.77, resulting in over a 1% move lower. $SPY ( ▼ 1.11% )  $SPX ( ▲ 2.28% )  $ES_F ( 0.0% )

See how well the levels work?

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Now, the question is: where do we go from here? With today’s failure at key levels, it’s essential to identify the next areas of support that could provide a bounce or indicate further downside risk.

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 goal is always to guide the right direction for the day as early as possible (with enough time) to act on it. The levels provided that. The inability to hold above 7748 was a significant warning sign, giving 117 points of downward movement. Always trust the levels.

Now we are sitting in after hours right on the key 7657 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 1% move lower came on high volume, reflecting strong selling interest.

Looking ahead to Monday, we have a lighter day in terms of scheduled speeches and reports, but it’s important to remain vigilant for any unexpected developments from overseas or from the administration that could impact market sentiment.

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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