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In yesterday’s letter, we wrote:

This is what happened. The levels held firm today, especially overnight when we dipped no lower than the key 6976 SPX level precisely, signaling bullish momentum. This support allowed the market to surge 40 points higher, precisely rejecting at the 7016 SPX level. In the regular session, we saw a dip but managed to defend just above the 6957 level, leading to a day of choppy trading before closing right at the 6976 support. $SPY ( ▲ 0.5% )  $SPX ( ▲ 0.54% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now that we had yet another consolidation day after testing (and defending) lower supports and testing higher - where do we go from here? Where must we defend to keep a breakout alive?

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 low and high of the overnight session were precisely at our key support & resistance levels. Regular session - chop mostly in-between. Always trust the levels.

Now we are sitting in AH right on the key 6973 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 trading was characterized by a flat consolidation day, which is somewhat rare for FOMC, indicating a cautious approach from traders as they await further clarity.

Looking ahead to tomorrow, we are positioned to react to today’s earnings and key unemployment data scheduled before the open. We want to ensure we are prepared for any volatility that may arise.

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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