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In yesterday’s letter, we wrote:

This is what happened. The market opened with a bearish sentiment as we lost the key support level of 5350 in the overnight session. We saw sustained selling pressure right at the open, and although we later had a bounce that pushed us to a high of 5367.24, we could not break through the crucial 5371 breakout level. As anticipated, once we lost 5350 again, it triggered a massive sell-off that took us down to a low of 5220.79, marking a significant range of nearly 150 points. $SPY ( ▲ 0.14% )  $SPX ( ▲ 0.13% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now that we've seen another leg lower even with a rally into the close, where do we go from here? What levels must we hold to prevent further downside, and what targets above could signal a potential recovery?

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 levels played out as expected. Losing 5350 led to a series of downward moves, and the inability to reclaim the breakout level at 5371 was pivotal in the bearish trend we observed. Failing at 5301 later in the day was key to get that additional deeper sell. Always trust the levels.

Now we are sitting in AH right on the key 5265 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 was marked by a nice leg lower on decent volume, higher than the prior two sessions.

Tomorrow is the final trading day of the week, and we have unemployment data scheduled prior to the open, along with at least one FOMC member speaking during the session. This could lead to increased volatility, so stay alert to how the market reacts to the incoming data.

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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