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In yesterday’s letter, we wrote:

This is what happened. After defending the 6042 level initially, we saw a strong push upward, reaching a high of 6070.67, just below the key target of 6074. However, we couldn’t break out above this level. Post-FOMC, the market lost the critical support at 6020, which triggered the short opportunity I outlined. We not only fell through all the indicated levels but ultimately plummeted to a low of 5867.79 by the end of the session.

See how well the levels work?

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The initial defense of 6042 proved fruitful for a long, while the subsequent loss of 6020 provided a clear short signal, leading to a significant decline.

Now that we've experienced such a sharp drop, where do we go from here? What key levels should we be watching to determine the next potential move?

More in the trade plan below.

Today’s trades were focused on the long after the defense of 6042, which ran beautifully to the high of the day at 6070.67. Unfortunately, once we lost the 6020 level, the short was firmly on, leading to a breakdown through the levels down to 5867.79.

This was a clear illustration of the importance of respecting the levels. The beautiful layout of the levels we discussed resulted in both the initial long and the subsequent short opportunities.

Below, we’ll cover the actionable levels, how I played them today and what they mean for the next session.

Levels were phenomenal. The defense of 6042 got us long, then the failure and retest of 6020 triggered the short. That lead to a massive 153 point move lower. Always trust the levels.

Now we are sitting in AH right on the key 5862 support level. What does this mean and where do we go from here? Read below for my 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.

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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

Today marked a monster 3% down day on very high volume.

Tomorrow, we have GDP and unemployment data prior to the open, along with some home sales data in the morning. This could lead to further volatility as traders react to the economic landscape, so be prepared for potential movement in either direction.

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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