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In yesterday’s letter, we wrote:

This is what happened. We began by holding the critical 7725 level overnight, which allowed us to rally on the CPI data release, ultimately reaching a high of day at 7766 at the open. However, we quickly lost the 7759 level, which acted as resistance all day, and then found support at 7738, where we saw a low of day at 7737.95. This led to a period of sideways chop into the close. $SPY ( ▲ 0.25% )  $SPX ( ▲ 0.26% )  $ES_F ( 0.0% )  

See how well the levels work?

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Moving forward, while today’s consolidation did not yield the explosive breakout we hoped for, the levels were the ceiling and floor. Which levels must hold tomorrow and how far could we fall if they don’t?

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 floor and ceiling levels provided were spot on right at high of day and low of day (within 5 cents!) . Always trust the levels.

Now we are sitting in after hours right on the key 7752 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’s market saw a modest .25% move higher, but it was characterized by low volatility and lower volume, particularly for a CPI day.

As we look to tomorrow, we have PPI data scheduled for release before the market opens, along with unemployment claims and a 30-year bond auction in the afternoon. Additionally, at least two FOMC members will be speaking throughout the day, which could add to market volatility.

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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