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In yesterday’s letter, we wrote:

This is what happened. The day started with the market defending the important 7753 support level overnight, which allowed us to make a run up to the 7783 resistance area. However, we rejected this in premarket and during the regular session, we were unable to maintain 7753, which triggered a series of lower tests. After losing 7733, we faced multiple defenses at the key 7712 level before ultimately breaking down to a low of 7694.89, just below our 7699 downside target. $SPY ( ▼ 0.72% )  $SPX ( ▼ 18.82% )  $ES_F ( 0.0% )

See how well the levels work?

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Now, as we reflect on today’s trading, the loss of those critical supports raises questions about the next steps. Where do we go from here, and what are the levels that we must reclaim to regain bullish momentum?

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 defense of 7753 overnight gave way to a push higher but the loss of key supports below led to a further sell-off. Always trust the levels.

Now we are sitting in after hours right on the key 7700 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 marked a 0.75% decline on higher volume than we’ve seen over the last few rally days, signaling increased selling pressure.

Looking ahead to tomorrow, we have at least four FOMC members scheduled to speak throughout the day, along with key unemployment data set to be released before the market opens. This combination of events could introduce significant volatility, and we must be prepared to adjust our strategies accordingly.

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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