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In Friday’s letter, I wrote:

This is what happened. Now I didn’t cause Biden to drop out, but I had it on the radar as many did. After dipping below SPX 5515 and then defending we pushed higher in Sunday futures and overnight into Monday to open with an open up to 5562. After flagging out and chopping for a period of the day with a dip to a low of 5529 just below the 5531 above; In the afternoon we decided to rally up and take out the 5566 target listed above to a high of 5570.36.

See how well the levels work?

With the first relief rally in the books, where do we go from here? Where must we target and obtain to increase this from a one day wonder? What levels below keep this possibility alive?

More in the trade plan below.

The $SPY 0DTE 555 calls ran from a low of $34 to $103 for 203% gain.

I traded these from $54 to $101 in the chat. I let the rest get stopped out for profit and then called it a day. I had a lean we would move higher but of course we had to chop a bit first. 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.

We had the big move up overnight and then we had to buck both sides before finally getting back up to new high of day. The ‘tell’ was that the 5531 level held all day like a champ! Always trust the levels!

Now we are sitting in AH right above the key 5556 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.

Relief BOUNCE - can bulls run with this?

Quick volume check:

Weaker volume than all 3 sell days last week.

Tomorrow we have a light day in terms of speeches, scheduled events or data releases. Existing home sales is the biggest one, 30 minutes into the regular session.

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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