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In yesterday’s letter, we wrote:

TThis is what happened. Overnight we did not need to retest the 4915 for the short entry, and we rallied higher. We opened the day by reclaiming and defending the critical level of 4998 multiple times. This made us well-prepared for the explosive news that followed. The market reacted strongly to tariff pause news, leading to a monumental 10% rally that took us all the way up to a high of 5481.34. $SPY ( ▲ 0.14% )  $SPX ( ▲ 0.13% )  $ES_F ( 0.0% )  

See how well the levels work?

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The reclaim of 4998 was the key signal that set the stage for today’s impressive move. Many traders were caught off guard, but those who were watching the levels closely were able to capitalize on the bullish sentiment.

Now, after such a massive rally, where do we go from here? What key levels should we monitor to ensure we maintain this momentum and not fall back into a bearish trend?

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 overall levels played out exceptionally well today. The market did not need to test lower levels like 4915 for the short, and our consistent reclaim of 4998 helped prepare us for the subsequent run higher. Always trust the levels.

Now we are sitting in AH right on the key 5472 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.

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 we had a history making monster 10% rally on high volume.

Tomorrow we have CPI and unemployment data prior to the open, along with at least five FOMC members speaking and a 30-year auction. Given these events, we can expect continued volatility in the market. Keep a close eye on how these reports impact the trading environment.

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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