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In yesterday's letter, we wrote:

This is what happened. The market opened and quickly lost the crucial 5739 level, triggering a swift decline that took us down to a low of 5694.41, which is a significant drop of 45 points below the key level we had identified.

See how well the levels work?

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Now that we lost a critical level and put in a major sell, where do we go from here? Where must we hold to prevent revisiting recent lows and where must we reclaim above to keep a path to fresh all time highs 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.

Levels were spot on today. Losing the 5739 level was a clear signal that we were headed lower, and the market reacted accordingly. Always trust the levels.

Now we are sitting in AH right on the key 5683 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 price action resulted in a major 1%+ down move on higher volume, indicating a strong seller presence. The market is currently digesting the implications of the recent auto tariff announcement and related speech events.

Looking ahead, tomorrow we have important economic data to consider—GDP and unemployment figures will be released prior to the open, along with pending home sales during the session. Additionally, there will be an FOMC member speaking after the close, which could add further volatility to the markets.

As always, it’s crucial to stay vigilant and ready to adapt to these developments as they unfold.

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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