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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.

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In Friday’s letter, I wrote:

This is what happened. Overnight we rallied above 5474 to just over 5480 SPX and then dropped to defend right at the 5460 level. We then tried to breakout once more at 5474 and failed causing a sell that ended up taking out 5460 and defending the 5444 target. Then we bounced rest of the day to close at 5475, right above the 5474 level.

See how well the levels work?

Now that we chopped, dropped and defended, where do we go from here? How much can we really expect during this holiday week?

More in the trade plan below.

The $SPY 2DTE 542 puts ran from a low of $65 to $179 per contract for 175% gain.

I traded these from $112 to $155 and then got stopped out for profit on the rest. More in the trade recap below.

Below, we’ll cover the actionable levels, how I played them today and what they mean for the next session.

Choppy, but when we lost 5460 it was clear and the defense at 5444 was real. A couple great moves to trade. Always trust the levels!

Now we are sitting in AH right above the 5466 key 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.

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Trading Plan

Here is a current check of the daily:

This includes all the way back to 1/5 & all overnight action.

A drop, defense and firmly right in the range.

Quick volume check:

Lower holiday week Monday volume. Would not be surprised to see it fade off each day.

Tomorrow we have Powell speaking at the open, we also have jobs numbers 30 min in.

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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