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In yesterday’s letter, we wrote:

This is what happened. The market opened with a dip and successfully defended the 7355 level, which allowed for a run-up through key levels, reaching a high of 7396.56—just above our target of 7389. However, after this peak, we lost the 7355 support, triggering the anticipated short scenario and leading to a drop through all downside targets mentioned above-all the way down to the low of day at 7265.93, which was perfectly aligned with our downside target of 7266. $SPY ( ▼ 1.34% )  $SPX ( ▼ 1.44% )  $ES_F ( 0.0% )  

See how well the levels work?

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See the Plays

Now, as we assess this significant move, the question arises: what does this mean for the next session? Where do we need to bounce to regain bullish momentum, and what levels below should we watch out for if the downward trend continues?

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 7355 at the open was critical for our bullish outlook, but the inability to maintain that level has shifted the momentum and led to a loss of key supports. Always trust the levels.

Now we are sitting in after hours right on the key 7260 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.

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, we experienced a substantial 1.5% move lower, though it came on surprisingly average volume, indicating a lack of strong conviction among sellers.

Looking ahead to tomorrow, we have key PPI data set to be released before the open, along with employment data and a 30-year bond auction scheduled for the afternoon. These factors will be vital to monitor as they could greatly influence market direction.

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 don’t have to 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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