In Friday’s letter, we wrote:

This is what happened. Unfortunately, Sunday at the open, we failed to hold the crucial 6089 level (6122 /ES), and it was all downhill from there. The SPX hit a low of approximately 5915 on a sharp spike down before the market opened during the violent pullback. We then entered a defensive chop, managing to bounce off the 5980 level and finally closing above the key psychological level of 6000 just above the 6008 level posted.

See how well the levels work?

Now that we had a single day high volume violent sell off, where do we go from here? What levels must we hold to prevent a deeper sell and where are buyers looking for continuation higher?

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 6089 was key, to open Sunday futures 20 points below (6122) it was clear we were in for a lot more pain. Always trust the levels.

Now we are sitting in AH right on the key 6018 support level. What does this mean and where do we go from here? Read below for my 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 major 1.5% dip, down by as much as 3% at one point overnight and accompanied by the highest volume we’ve seen this year. This sharp decline underscores the importance of maintaining awareness of market dynamics and staying alert to key levels.

Looking ahead, tomorrow we have consumer confidence data being released during the session, followed by the highly anticipated FOMC fed rate decision on Wednesday. These events could further influence market volatility, and I recommend keeping a close eye on any developments that may arise from these reports.

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.

Subscribe to Premium to read the rest.