In Friday’s letter, we wrote:

This is what happened. The market opened strong as futures held their ground above critical support levels, with not even a dip to 6636 needed. Instead, we saw a steady grind higher through the overnight session, eventually reaching the significant 6684 SPX resistance exactly. A small pullback occurred prior to the open with a sell-off of 14 points, then dipped further in the regular session. We found support around the 6655 level, allowing for a dip and defense strategy as we held onto gains into the close. $SPY ( ▲ 0.28% )  $SPX ( ▲ 0.26% )  $ES_F ( 0.0% )  

See how well the levels work?

Now, looking ahead, we must remain cautious as we approach higher resistance levels. With the bullish scenario playing out today, but selling off most of the move, where does that leave us? Could the low still be ‘in’?

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 straight grind up in Sunday futures to reject exactly at the 6684 resistance and then the 6655 dip & defense during the regular session were key examples of the levels entry/pivot points. Always trust the levels.

Now we are sitting in AH right on the key 6656 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

Today’s price action was characterized by flat consolidation on lower volume, indicating a lack of strong conviction from either buyers or sellers.

As we prepare for tomorrow, we have JOLTS job data and consumer confidence reports to digest, alongside speeches from at least four FOMC members. Additionally, keep an ear out for any developments regarding the federal shutdown, as this could impact market sentiment and trading conditions 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 can not 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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