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In yesterday’s letter, we wrote:

This is what happened. Today, we witnessed a solid defense of the 7747 level overnight, which set the tone for a run-up through 7767 and 7788, ultimately reaching a high of day at 7793.68 right at the open. However, following this initial surge, we saw a drop and consolidation throughout the day, closing near the low of day 7720.17. This indicates a good consolidation phase after the significant upward momentum we experienced over the last two sessions. $SPY ( ▼ 0.2% )  $SPX ( ▼ 0.17% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we transition into a consolidation phase, where do we find support if we break below? What level should we watch above to maintain our bullish thesis?

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 of 7747 was crucial and allowed for a move higher, but today’s drop shows that we are vulnerable to pullbacks. Always trust the levels.

Now we are sitting in after hours right on the key 7720 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 slight drop of 0.17% on average volume.

Looking forward to tomorrow, we have key employment data to be released before the open, alongside at least one FOMC member speaking after the market close. These events could have significant implications for market direction, so staying alert is essential.

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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