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In yesterday’s letter, we wrote:

This is what happened. The market faced some resistance today, unable to maintain the upward momentum as we opened below the key 7754 level and hit a high of 7750.19 before succumbing to selling pressure. We gave up significant levels, including 7740 and 7723, dropping down to the critical support at 7705, where we hit a low of 7706.12. However, the market managed to bounce back, reaching near 7730 before consolidating sideways, ultimately closing just below the 7723 level. $SPY ( ▼ 0.39% )  $SPX ( ▲ 1.86% )  $ES_F ( 0.0% )

See how well the levels work?

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Now, with key supports tested and the market showing signs of fatigue - where do we go from here? What levels must we defend to keep the upward move alive and where do we find additional support below?

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 failure to hold the 7754 level and the subsequent drop to 7705 to run it back up highlighted the importance of our key levels. Always trust the levels.

Now we are sitting in after hours right on the key 7711 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 presented a good test of supports, resulting in a modest decline of .38% amid the consolidation.

Looking ahead to Tuesday, we will be monitoring any news that may arise from the long weekend regarding the Middle East or trade developments. Additionally, on Wednesday, we have a 10-year bond auction, followed by PPI and CPI reports later in the week, which could influence market dynamics significantly.

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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