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In Friday’s letter, we wrote:

This is what happened. We started the day with a strong dip and defense of the critical 7735 level right at the open. The low of day was 7727.59, which proved to be a solid support point. From there, we rallied through the levels, breaking past 7735, 7756, and 7783, ultimately reaching a high of 7794.35, just shy of our 7805 target. $SPY ( ▲ 0.67% )  $SPX ( ▲ 3.07% )  $ES_F ( 0.0% )

See how well the levels work?

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Now, as we look ahead, the question remains: can the momentum continue? What levels should we focus on for potential entry points or exits?

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 successful defense of the 7735 level was a clear signal for long entries and demonstrated the market’s commitment to maintaining its upward trajectory. Always trust the levels.

Now we are sitting in after hours right on the key 7776 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.

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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.

Trading Plan

Today was a good .6% move higher. For tomorrow, we have two FOMC members speaking during the regular session, which could introduce volatility. Additionally, on Wednesday, we will receive the FOMC meeting minutes from the last meeting, providing further insights into the central bank’s stance. Traders should remain alert and prepared for potential market shifts based on these events.

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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