In yesterday’s letter, we wrote:

This is what happened. The market showed impressive resilience today, particularly with the dip and defense of the critical 6711 SPX level overnight, which proved to be the most bullish scenario. This setup allowed for a powerful surge all the way to our resistance target of 6744. In the regular session, we successfully defended the 6729 level multiple times, which provided traders with ample opportunities to capitalize on the upward momentum. And if that wasn’t enough, we had a defense just above the 6700 support (level to long). $SPY ( ▼ 0.0% )  $SPX ( ▲ 0.01% )  $ES_F ( 0.0% )  

See how well the levels work?

Now, as we look forward, the question remains: can we hold key supports to maintain this bullish stance? What are the key levels to monitor in the coming days?

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 defense of 6711 overnight, 6729 and 6700 during the regular session and the 6744 rejection were all reactions to key support & resistance. Always trust the levels.

Now we are sitting in AH right on the key 6711 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 price action was characterized by wide-ranging volatility on high volume, signaling strong market participation.

As we move into Monday, the outlook appears relatively quiet, with no scheduled data and only one FOMC member speaking after the close. This light calendar could provide a much-needed breather for the market, allowing traders to reassess positions and strategize for the upcoming week.

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.

Subscribe to Premium to read the rest.