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In Friday’s letter, we wrote:

This is what happened. Today was a day filled with volatility and opportunities as both scenarios we anticipated played out. Starting with the Sunday futures, we successfully broke through the 7416 resistance, which ignited a rally that propelled us past the levels of 7432, 7448, 7464, and even reached 7492. This breakout provided a stellar long opportunity for traders who were prepared.

However, the regular session brought a shift in momentum. After peaking at 7492, we faced a significant drop, losing key supports along the way. Ultimately, we fell below 7404, hitting a low of 7382. This drop tested the 7379 support level, which held, allowing for a bounce back as we recovered to close above 7404. $SPY ( ▲ 0.02% )  $SPX ( ▲ 0.02% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, with such a dynamic trading day behind us, where do we go from here? What levels do we need to monitor closely, and how will the upcoming economic data impact our strategy moving forward?

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 bounce back through 7416 and hold of 7448 in Sunday futures led to a massive run all the way up through 7492. This and the loss of those key supports to fall all the way back down below 7404 are key examples of the levels at work. Always trust the levels.

Now we are sitting in after hours right on the key 7416 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 market action was a monster move in both directions, resulting in a flat close despite decent volume.

As we look to tomorrow, we have key employment data and consumer confidence reports scheduled for release before the open. All eyes are on the Fed meeting on Wednesday, which could have significant implications for market direction.

Keep an eye on the key levels we discussed, as they will guide our trading strategy moving forward.

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 don’t have to 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.

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