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In yesterday’s letter, we wrote:

This is what happened. The levels played out flawlessly today. First, we lost the key 7778 level early in the session, which triggered a significant drop through 7763, 7743, and 7724, ultimately hitting our downside target of 7693 with low of day 7693.31 — RIGHT ON THE NOSE! This led to a substantial 1.11% down day, showcasing the importance of adhering to our levels. $SPY ( ▼ 1.08% )  $SPX ( ▼ 1.58% )  $ES_F ( 0.0% )

See how well the levels work?

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Now, with such a sharp decline under our belts, where do we go from here? What levels must we regain to find stability, and how can we position ourselves for any potential reversals or further declines?

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 loss of the 7778 key support level was the sign and pointed the direction for the remainder of the day. Always trust the levels.

Now we are sitting in after hours right on the key 7720 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 market saw a strong move lower with high volume, indicating that sellers were firmly in control.

Looking ahead, tomorrow promises to be eventful with PPI data released prior to the open, along with key employment data and a speech from the Fed Chair during the session. These events are likely to create additional volatility, so it’s crucial to stay alert and be ready to adjust our trading 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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