In yesterday’s letter, we wrote:

This is what happened. We successfully held the critical 6824 SPX level overnight, which set the stage for a rally that propelled us up to 6848. Despite a brief dip in the morning, we defended the 6803 level, marking a low of 6810 before continuing our ascent throughout the day. Today’s price action culminated in a high of day at 6862 - right at the 6860 target before experiencing a slight pullback into the close. $SPY ( ▲ 0.35% )  $SPX ( ▲ 0.3% )  $ES_F ( 0.0% )  

See how well the levels work?

As we continue to navigate this bullish environment, the key focus now shifts to whether we can maintain this upward momentum. What levels must we hold to sustain this rally, and where do we see potential resistance ahead?

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 6824 overnight and 6803 during the regular session were key signs the market wanted higher tagging the 6860 target. Always trust the levels.

Now we are sitting in AH right on the key 6854 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.

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Trading Plan

Today was a decent .3% move higher but on continued lower volume. This could indicate that while we are seeing positive movement, caution is warranted as we assess market strength.

Looking ahead to tomorrow, there’s another key unemployment report scheduled prior to the open, along with at least one FOMC member speaking during the session. These events may introduce volatility, so it’s vital to remain alert and ready to adjust our strategies as needed.

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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