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In yesterday’s letter, we wrote:

This is what happened. On the CPI reaction and at the lowest point of the overnight session, SPX dipped into 6754 and found support exactly where we wanted to see buyers step in. That defense launched a sharp 35-point rally, and after the opening bell price extended all the way to 6811.15, essentially tagging our 6810 upside target before fading. From there, the market spent the rest of the session rotating lower, briefly losing and then repeatedly defending 6754 in a choppy consolidation that ultimately finished flat. $SPY ( ▼ 0.13% )  $SPX ( ▼ 0.08% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, after a session that respected both the upside target and the key downside support, the big question is whether this is healthy consolidation before continuation higher or the start of a larger stall near highs. Where must bulls continue to defend to keep control, and what level needs to break for momentum to expand again?

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 6754 was the key tell all day. It gave us the initial launch higher, and even after the move to 6810 completed, that same level continued to act as critical support throughout the consolidation. Always trust the levels.

Now we are sitting in after hours right on the key 6771 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

Overall, today was a solid range session that closed essentially flat on average volume, suggesting the market is still digesting recent gains rather than giving way to heavier selling pressure.

For tomorrow, we have important unemployment data before the open, at least one FOMC member speaking, and a 30-year bond auction in the afternoon. With multiple macro catalysts on deck, traders should be prepared for volatility around these events and stay focused on how price responds at the key levels.

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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