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In Friday’s letter, we wrote:

This is what happened. We saw a dip in Sunday futures to the 7370 SPX level, which was defended well, leading to a consolidation bounce of over 20 points. In the regular session, another dip occurred, but the 7385 level held strong (low of day at 7384.2), setting the stage for a significant run up to a high of 7428.97, just shy of our target at 7432. $SPY ( ▼ 0.5% )  $SPX ( ▼ 0.49% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we look ahead, the question arises: how can we maintain this momentum? What levels must hold to keep the bullish sentiment alive and where should we be cautious?

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 strong defense of 7370 and 7385 in the regular session kept us looking northward. Always trust the levels.

Now we are sitting in after hours right on the key 7406 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.

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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

The day concluded with a decent consolidation, closing 0.2% higher on lower volume. This indicates that while the upward movement is strong, we should be aware of potential exhaustion in buying.

Looking to tomorrow, we have the Consumer Price Index (CPI) data set for release prior to the open, along with a 10-year bond auction scheduled in the afternoon. These events could certainly impact market dynamics, so it’s crucial to stay alert and prepared for potential volatility.

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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