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In Friday’s letter, we wrote:

This is what happened. We started the day with some optimism, as futures held the critical 7655 level multiple times overnight. However, after the market opened, we failed to maintain that support and dropped to our next downside target, hitting a low of day at 7638.17, right at our 7639 target. Then we defended and bounced around 7655 in sideways chop all day. $SPY ( ▼ 0.29% )  $SPX ( ▼ 0.28% )  $ES_F ( 0.0% )

See how well the levels work?

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Now, with today’s chop session behind us, what does this mean for the outlook? Are we staring down further downside, or is there potential for a bounce?

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 continued chop around 7655 as well as the defense right at 7639 downside support (low of day 7638.17) are prime examples of the supports at work. Always trust the levels.

Now we are sitting in after hours right on the key 7654 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 was a modest .3% move lower, characterized by sideways consolidation around the support.

Looking ahead to tomorrow, we have critical employment data and consumer confidence reports being released in the morning, along with at least two FOMC members speaking throughout the day. These events could significantly impact market sentiment and trading behavior, so stay alert and prepared to adapt.

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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