In yesterday’s letter, we wrote:

This is what happened. After successfully holding the 6587 level overnight, the market rallied up to 6637 resistance. Following a brief dip before the open, we surged from the opening bell to reject near the 6653 resistance, reaching a high of 6648.97. The consolidation afterward saw us defend critical support at 6602, hitting a low of 6604.43 before grinding back up and defending the 6637 level into the close. $SPY ( ▲ 0.57% )  $SPX ( ▲ 0.59% )  $ES_F ( 0.0% )  

See how well the levels work?

Now, as we look ahead to next week, the question remains: can we maintain this positive momentum? What levels must we hold to ensure further upside, and where should we be cautious if we don’t hold?

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 rejection at 6653 as well as the defense at 6602 and reclaim of 6637 were particularly key today - could trade both ways! Always trust the levels.

Now we are sitting in AH right on the key 6645 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.

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Trading Plan

Today saw a solid .6% move higher, albeit on lower Friday volume, indicating a potential lack of conviction among buyers. However, the defense of key support levels bodes well for continued upward movement in the near term.

Looking forward to Monday, the calendar is packed with at least five FOMC members speaking, along with pending home sales data. These events could significantly impact market sentiment, so it’s crucial to remain attentive to developments and ready to adjust our strategies accordingly.

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.

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