In yesterday’s letter, we wrote:

This is what happened. Today’s trading saw both potential scenarios unfold as anticipated. We successfully defended the 6910 level overnight, which allowed us to push through the 6933 resistance target for higher levels. However, during the regular session, we quickly lost those supports, and the failure to hold 6898 triggered a massive sell-off, leading us down through 6864 and 6846, approaching the 6826 target before a late-day defense and near-recovery of 6898 into the close. $SPY ( ▼ 1.23% )  $SPX ( ▼ 1.23% )  $ES_F ( 0.0% )  

See how well the levels work?

Now, with the market showing such volatility, where do we go from here? What levels must we hold to ensure a reversal and regain bullish momentum?

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 6910 was crucial for the initial bullish move, but the inability to hold 6898 marked a significant shift in sentiment. Always trust the levels.

Now we are sitting in AH right on the key 6912 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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Don’t miss the Topic Directory - Getting lots of questions that are answered in here.

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Trading Plan

Today’s move represented a solid 1/2% decline on high volume, indicating strong selling pressure.

Looking ahead, we have unemployment data scheduled for both pre-and post-open, including the return of JOLTS data. Additionally, at least one FOMC member will be speaking in the morning, which could add further volatility to the market.

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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