In partnership with

2 Cards Charging 0% Interest Until 2026

Paying down your credit card balance can be tough with the majority of your payment going to interest. Avoid interest charges for up to 18 months with these cards.

Learn More

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.

In yesterday's letter, I wrote:

This is what happened. After the market opened, we drifted lower, eventually defending at 5810 but after a small bounce the level failed. The inability to bounce back from that critical support was a significant tell. Once we fell through 5810, it was all downhill from there, leading us to a low of 5762.41, just shy of the 5764 level that I had highlighted previously. The failure at 5810 confirmed the bearish sentiment, and we saw a swift decline as traders reacted to the inability to find support.

See how well the levels work?

Now that we’ve seen a significant sell-off, where do we go from here? What key levels should we be watching, and what does the volume indicate about buyer sentiment?

More in the trade plan below.

I successfully traded the short position. The clear indication was after the bounce when we couldn't even reach the 5810 level again for a potential reclaim. This breakdown allowed me to capitalize on the downward movement effectively. More details in the trade recap below.

Below, we’ll cover the actionable levels, how I played them today and what they mean for the next session.

The loss of 5810 led to a much greater sell. Always trust the levels.

Now we are sitting in AH right on the key 5802 support level. What does this mean and where do we go from here? Read below for my 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.

Trading Plan

This session marked the first significant sell-off in many days, and it came on decent volume—higher than the previous twelve sessions, indicating that sellers were indeed in control.

Looking ahead, tomorrow we have unemployment data, PMI, and at least one FOMC member speaking. These events could add further volatility to the market, so it's essential to stay alert and prepared for potential movements based on the economic indicators and announcements.

Traders should remain vigilant as these events unfold and consider how they might impact market sentiment and movement. Keep an eye on the critical levels and prepare accordingly.

I am receiving some great questions from beginners. This is helping me develop guides for this group as well as the course. More to come but I’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, I’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.

Subscribe to Premium to read the rest.