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In yesterday’s letter, we wrote:

This is what happened. The market opened (high of day 6408.40) and we were unable to hold onto the key 6406 support. This led to a significant drop of 65 points. Then, after the bleeding stopped (low of day 6343.86) and we reclaimed the key 6358 support level we ran all the way back to the 6406 level, rejected and closed just below. $SPY ( ▼ 0.27% )  $SPX ( ▼ 0.24% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, with a key support giving way to massive dip that was then bought back up, where do we go from here? How do we prepare for Jerome’s Jackson Hole speech and where must we hold to prevent another major retest?

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 loss of the 6406 key support as well as the 6358 reclaim that led to a run back to 6406 were spot on to give an edge on direction early enough to act upon it. Always trust the levels.

Now we are sitting in AH right on the key 6397 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.

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Trading Plan

Overall, today was characterized by a massive dip followed by a strong defense after reclaiming the 6358 level, which allowed SPY to recoup the majority of it’s drop into the close. High volume accompanied the day's action, indicating significant market participation.

Looking ahead, tomorrow promises to be eventful. We have an FOMC member speaking prior to the open, followed by unemployment data, and then PMI and existing home sales during the session. Additionally, it marks Day 1 of the Jackson Hole Economic Symposium, building anticipation for Friday’s critical speech by Powell. Be prepared for potential volatility as markets react to these developments.

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 can not 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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