Don’t miss the Topic Directory - Getting lots of questions that are answered in here.

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We saw a solid session Friday, with the SPX opening at key support levels. The defense of the 5764 level proved to be crucial, as it led to a rally that pushed us towards the 5824 resistance, ultimately reaching a high of 5822.13. It was a strong move that demonstrated the effectiveness of our levels, allowing us to capitalize on the support that was in play.

See how well the levels work?

Watching the levels play out reinforces the importance of sticking to our trading plan and remaining patient.

Now that we’ve had the Friday breakout and closed above, is this enough not to retest lower? What does volume show? What critical level will be a ‘shot across the bow’ warning' if it fails?

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.

The defense of the 5764 key support led to a rally towards 5824 resistance. Always trust the levels.

Now we are sitting in AH right on the key 5804 support 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.

Trading Plan

As we look toward next week, the overall volume during Friday's breakout was less than we would have preferred, but we should expect an uptick in activity come Monday. The breakout candle we established offers a solid foundation for potential upward movements, and with a few FOMC member speeches scheduled before, during, and after the session, we may see increased volatility and opportunities arise.

Keep an eye on the economic landscape as we move into next week, as these speeches may provide more clarity on market direction and 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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