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In yesterday’s letter, we wrote:

This is what happened. The market showed solid execution today as we observed a dip and defense of the critical 7519SPX level overnight, which laid the groundwork for an upward move towards the 7558 target. Then we had a dip into the regular session, with another bounce reaching a high of 7530.72 before settling into a period of sideways chop. A key moment was the defense of the 7506 level, which allowed us to rally back to flat at 7519 into the close. $SPY ( ▼ 0.02% )  $SPX ( ▲ 0.02% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we approach key economic data releases tomorrow, we must consider what levels we need to hold to maintain our bullish bias. How will the market react to these data points? What levels must be regained to foster further upside momentum?

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 dip & defense of 7519 overnight as well as the 7506 dip & defense in the regular session were key areas for long entries. Always trust the levels.

Now we are sitting in after hours right on the key 7522 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 constructive consolidation day, testing higher levels while defending key supports. The fact that this occurred on lower volume indicates that while the market is holding up, we should be cautious of a potential pullback.

Looking ahead, tomorrow brings key PCE and GDP data, along with unemployment reports in the morning. We’ll also see new home sales numbers released post-open, paired with speeches from at least three FOMC members throughout the day. These events will be crucial as they could significantly influence market sentiment and volatility.

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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