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In yesterday's letter, we wrote:

This is what happened. Today, the SPX levels played out remarkably well. After the loss of 6761 overnight, we fell sharply to 6712 support, but then quickly reclaimed 6742. This recovery allowed us to push back up to a high of 6774, which aligned perfectly with yesterday’s close. During the regular session, we saw a strong bounce from the 6761 level (with a low of day at 6763.11), which propelled us to test the key resistance at 6829 (high of day at 6829.78). However, we could not sustain momentum beyond that level, leading to a pullback into the close. $SPY ( ▲ 0.35% )  $SPX ( ▲ 0.37% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, did we bounce enough to keep a deeper pullback at bay? Or do we have higher supports to reclaim before longs are safe?

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.

Just look at today’s high and today’s low. They are basically spot on to support and resistances from the above paragraph in yesterday’s trade plan. Always trust the levels.

Now we are sitting in AH right on the key 6798 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.

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Trading Plan

Overall, it was a solid 1/2% move higher on decent volume, indicating a healthy market dynamic.

Looking ahead to tomorrow, we have employment data on the docket, along with a busy schedule featuring at least six FOMC members speaking throughout the day. These events could have significant implications for market direction, so it’s crucial to stay alert and adaptable.

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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