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In Friday’s letter, I wrote:

This is what happened. The market opened strong, successfully defending the 5377 level right out of the gate in Sunday futures. This bullish sentiment allowed us to target the key levels above, and as the day progressed, we saw the 5478 level act like a magnet, drawing us all the way up to a high of 5484.2, just above that crucial magnet level.

See how well the levels work?

Now that we defended and had a nice 1+% rally, where do we go from here? What are the key obstacles ahead and where must we hold to prevent further selling?

More in the trade plan below.

The $SPX 0DTE 5460 calls ran from a low of $400 to $2700 for 575% gain.

I was watching for a long entry and had to be patient but after selling off I waited for a reclaim of VWAP on ES - this launched us all the way to high of day! More in the trade recap below.

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

Levels played out great as the 5478 was a magnet drawing us up all day long and defending 5377 out of the gate on Sunday open in futures was the ticket to ride all the way up to 5484.2, just above the 5478 magnet level. Always trust the levels!

Now we are sitting in AH right above the key 5473 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.

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Trading Plan

Daily chart including all 24 hour trading sessions since 1/5/24:

As we move forward, we find ourselves back at levels from mid-August, which may be the catalyst for another significant move in the market.

Volume was lower than last week but still elevated, indicating active participation.

Looking ahead to tomorrow, we have a lighter day in terms of data releases; however, two FOMC member speeches are scheduled during the session. Additionally, CPI and PPI reports are set to come out on Wednesday and Thursday this week, which could introduce volatility and further influence market direction. Keep an eye on these events.

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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