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In yesterday’s letter, we wrote:

This is what happened. After an overnight hold of the critical 7138, we encountered a drop just before the market opened, which tested the 7121 level, as expected. During the regular session, we dropped further and tested the vital 7109 support not once but twice, with the low of the day hitting 7107.86. This tested level proved resilient, allowing us to push back above 7121 and maintain 7138 as our ceiling, ultimately closing flat for the day. $SPY ( ▼ 0.02% )  $SPX ( ▼ 0.04% )  $ES_F ( 0.0% )  

See how well the levels work?

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What levels are we watching for potential long entries, and how can we prepare for tomorrow’s data releases?

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 at 7109 (TWICE) and bounce back to close the day flat are prime examples of the power of the levels. Always trust the levels.

Now we are sitting in after hours right on the key 7121 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

Overall, today was a consolidation day characterized by lower volatility than usual for an FOMC meeting but on decent volume. The market appears to be setting up for potential movement, contingent on tomorrow’s economic data.

Looking ahead, we have GDP data and unemployment figures due before the market opens. Additionally, it’s crucial to keep an eye on geopolitical events, particularly regarding Iran, as they could impact market sentiment.

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 don’t have to 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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