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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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In yesterday’s letter, I wrote:

This is what happened. We lost 5531 overnight and could never reclaim. By the open we were battling 5507 level and lost it (high of day was just above at 5508.04). It was all down all day flushing through all the levels above and hitting a low of 5419.98.

See how well the levels work?

After the worst day in over a year, a massive 2.3% down day, where do we go from here? Will we get a relief rally even if temporary? Where must we reclaim to put buyers in control? Where must we hold now to prevent a further flush? And what does volume say?

More in the trade plan below.

The $SPY 2DTE 543 puts ran from a low of $66 to $430 for 552% gain.

I traded these from $94 to $160 in the chat. Definitely feel good about a 70+% play, one and done. Also wish I had taken some of my own advice and scaled out and just left runners. More on this in the trade recap below.

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

When we couldn’t reclaim 5507 in the morning it was over for me. It was a dead short. Always trust the levels!

Now we are sitting in AH right above the key 5439 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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Trading Plan

Here is a current check of the daily:

This includes all the way back to 1/5 & all overnight action.

I said yesterday, “A doji sell candle. Buyers must step in fast (especially now with the move down after hours) to prevent us from a significant sell.”

Well that has played out. Yesterday’s doji gave way to today’s massive sell. We have to look left more than 1 month out to find some support now.

Quick volume check:

Decent volume but surprised not to see much higher, should be within top 3 days this year in my opinion.

Tomorrow we have GDP and unemployment prior to the open.

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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