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In yesterday’s letter, we wrote:

This is what happened. The market opened with a strong attempt to hold above the critical level of 7711 but ultimately was unable. Continuous testing and retesting of this level led to a decisive break, signaling a shift in momentum. The warning signs were evident as we lost 7695, and the rejection of this level from below confirmed the bearish sentiment that took hold throughout the session. This culminated in a drop through 7671, leading us to a low of day at 7651.54, just past our downside target of 7659. $SPY ( ▼ 0.21% )  $SPX ( ▲ 5.38% )  $ES_F ( 0.0% )

See how well the levels work?

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Now, as we navigate through this chop zone, the question remains: where do we find support, and what levels must we reclaim to shift our bias?

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 inability to hold above 7711 and the loss of 7695 led to a loss of multiple additional support levels and pointed the way. Always trust the levels.

Now we are sitting in after hours right on the key 7651 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 .25% drop came on high volume, suggesting strong selling pressure in the market.

Looking ahead to tomorrow, we have crucial employment data scheduled for release before the market opens, alongside multiple FOMC members speaking throughout the day. These events will be pivotal in shaping market direction, so it’s essential to stay alert and ready to adjust our strategies as necessary.

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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