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In yesterday's letter, we wrote:

This is what happened. Fighting with 5996 and the range up to 6030 was today’s playground. The market opened with a struggle at the 5996 level, leading to a swift decline. We ultimately hit a low of 5977.83, just below the downside target of 5982, before experiencing a bounce back to 6006. After a run to 6030 we dropped again in the final minute of the session.

See how well the levels work?

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Now that we have extended Friday’s dip, where do we go from here? What levels must we hold to regain bullish sentiment, and which supports may serve as potential entry points?

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.

Once we lost 5996, it was a strong dip lower as expected, followed by a notable recovery to 6030 before the market sold off again towards the end of the day. The day's action was characterized by a fight for control around the levels of 5996 and 6030, making it a challenging trading environment. Always trust the levels.

Now we are sitting in AH right on the key 5988 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 volume was slightly lower than Friday's but remained elevated overall.

As we look ahead, we have at least three FOMC members speaking tomorrow, along with consumer confidence data in the morning. These events could bring additional volatility, so it’s essential to stay alert and manage risk appropriately.

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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