In Friday’s letter, we wrote:

This is what transpired. After losing 5548 overnight we gave way to a massive sell that took us all the way down to 5488 before turning it around. After this dip below 5492, we reclaimed the critical level of 5509. This occurred right after the low of the day, about 15 minutes into the session, and led to a strong rally all the way to a high of 5627.56—nearly 140 points higher! $SPY ( ▲ 0.28% )  $SPX ( ▲ 0.38% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now that we’ve turned the corner on today’s key level loss, the question remains: Is this the start of a new upward momentum as we head into Q2? What will the upcoming data reveal?

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 levels played out tremendously well as the loss of 5548 SPX overnight triggered a significant sell-off down to a low of 5488.73 before we turned it around. We managed to defend the key levels of 5492 and 5509, successfully reclaiming 5548. The end result was a surprising turnaround, transforming what initially looked like a down day into a .55% gain! Always trust the levels.

Now we are sitting in AH right on the key 5596 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 marked a significant bounce off the lows on very high volume, the highest in half a month.

Tomorrow, we have JOLTS, manufacturing PMI, and at least one FOMC member speaking in the morning. These events could provide further clarity and direction for the market as we move forward.

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.

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