In Friday’s letter, we wrote:

This is what happened. The levels played out as expected, with a strong overnight rally in futures that defended the critical 6815 SPX support level (exact at 6877 /ES), pushing the SPX up to a high of 6861-attempting the breakout at 6859. However, we faced trouble post-opening bell and quickly lost the pivotal 6859 breakout level, leading us down to the must-hold support at 6803-low of day 6801.49. Throughout the day, we managed to defend this level multiple times, maintaining a flat-line close despite the volatility. $SPY ( ▼ 0.15% )  $SPX ( ▼ 0.16% )  $ES_F ( 0.0% )  

See how well the levels work?

Now, as we find ourselves at the mercy of critical support - what will it take to revive bullish sentiment? Which levels are key to watch for potential bounce back and what could trigger further downside if we fail to hold?

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 overnight action provided an initial bullish tone, but losing 6859 so quickly after the open shifted the market sentiment. The critical 6803 support did its job! Always trust the levels.

Now we are sitting in AH right on the key 6818 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’s session was a stab higher but closed flat amid decent volume, indicating mixed sentiment.

Looking ahead, we have key employment data set for release prior to the open, along with manufacturing and services PMI data scheduled for post-open. These reports could provide clarity on market direction, so be prepared for potential volatility.

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.

Subscribe to Premium to read the rest.