In yesterday’s letter, we wrote:

This is what happened. After a significant overnight retracement, we dipped below the key support at 6636, but the market quickly defended this level, allowing for a rally of 20 points. This was a clear indicator of bullish sentiment as we then experienced another small dip post opening bell, but the support at 6654 held strong, leading to an impressive run of over 60 points, ultimately pushing us to fresh all-time highs and tagging the 6713 target. $SPY ( ▼ 0.21% )  $SPX ( ▼ 0.46% )  $ES_F ( 0.0% )  

See how well the levels work?

Now, with the market showing strength after defending critical levels, the focus shifts to how far we can extend this rally. Are we set to break through the next resistance levels, or will we see profit-taking near the peaks?

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 resilience shown at 6636 and 6654 indicates a strong buy-the-dip mentality among traders. Always trust the levels.

Now we are sitting in AH right on the key 6709 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.

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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 trading session concluded with a 0.34% gain on decent volume, which supports the bullish narrative.

As we look ahead to tomorrow, we anticipate more unemployment data and at least one FOMC member speaking during the session. These events could influence market dynamics, so it’s important to remain alert and prepared for any changes in sentiment.

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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