This is a repost of Friday’s letter for Monday.

In yesterday’s letter, we wrote:

This is what happened. The levels we had set were incredibly accurate, as we lost the critical 5994 level, which triggered the anticipated sell-off. The market plummeted down through all downside targets, ultimately reaching a low of 5932.95, just above the key target of 5928 that I highlighted.

See how well the levels work?

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The focus will be on how we react after this significant drop. Will we see a recovery, or will the selling pressure continue?

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 really great. Once we got the loss of 5994 it was all downhill and we got a 60+ point drop on decent volume for a holiday Friday. Always trust the levels.

Now we are sitting in AH right on the key 5977 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.

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

For Monday, we have PMI data just after the market opens, followed by pending home sales at 10 AM ET. Given today’s decent volume during the sell-off, it will be crucial to monitor how the market responds to these upcoming economic indicators. Traders should remain cautious and attentive to any potential volatility that may arise as a result of these reports.

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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