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In yesterday’s letter, we wrote:

This is what happened. The market opened today after a loss of the critical 7345 level overnight, but a swift recovery by the opening bell led to a strong upward movement through 7375, eventually breaking through 7390. This rally propelled the index much higher, surpassing our upside targets of 7406 and 7424, ultimately reaching a high of 7435.69—just shy of the significant 7438 resistance level. $SPY ( ▲ 1.03% )  $SPX ( ▲ 1.08% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we move forward, we must consider whether this momentum can be sustained. What levels must we hold to confirm bullish sentiment, and where is the next potential resistance?

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 recovery of 7375 and 7390 SPX were the keys (from yesterday’s trade plan) to know the direction and timing of entry. Always trust the levels.

Now we are sitting in after hours right on the key 7424 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 performance was impressive, with a robust 1% move higher on decent volume suggesting strong buyer interest. The ability to regain the lost ground and push through critical levels indicates a potential shift in market sentiment.

Looking ahead to tomorrow, we have key unemployment data scheduled for release prior to the market open, along with PMI data post-open. Additionally, at least one FOMC member will be speaking during the session. These events may lead to increased volatility, so it’s essential to remain alert and ready to adjust our strategies as needed.

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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