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In Friday’s letter, I wrote:

This is what happened. After a very nice run overnight in Sunday/overnight futures all the way up to the 5847 SPX level, we couldn’t hold the breakout of 5839 in the regular session. This led to a very choppy day drifting lower and not able to reclaim 5839 or ES VWAP.

See how well the levels work?

Now that we yet again took an overnight bounce but couldn’t hold key resistances above, where do we go from here? Are we destined for a deeper sell?

More in the trade plan below.

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

The failure to hold above 5839 was critical, as it indicated a lack of acceptance at higher prices, which in turn led to the day's overall drift lower. Always trust the levels.

Now we are sitting in AH right above the key 5824 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.

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.

Trading Plan

We experienced weaker volume than the previous four sessions, which contributed to the lack of momentum. The levels we discussed are still intact, and if we can find a way to reclaim the key areas again, we might see a stronger move.

Looking ahead, tomorrow brings consumer confidence and JOLTS numbers post-open. These economic indicators could provide the necessary catalysts for movement and help us determine the next directional bias in the market.

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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