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In yesterday’s letter, we wrote:

This is what happened. Overnight we dropped to the 7156 SPX support, where buyers stepped in, but soon after, we fell back and had to defend the critical 7108 support level. After holding this pivotal area, the market rallied back. In the regular session we chopped and defended lower supports again but led to a slow grind to recover 7121 and 7137 into the close. $SPY ( ▼ 0.49% )  $SPX ( ▼ 0.49% )  $ES_F ( ▼ 0.47% )  

See how well the levels work?

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Now, as we assess the market conditions and the potential for continued breakout higher, the question remains: how much strength do we have left, and where do we look for new opportunities? What key levels will guide us moving forward?

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 bounce off 7108 was significant, and led to a slow grind up to reclaim 2 additional major supports. Always trust the levels.

Now we are sitting in after hours right on the key 7138 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 was marked by a moderate .5% drop on increased volume.

Looking ahead to tomorrow, all eyes will be on the FOMC rate decision and the subsequent press conference. Additionally, we should keep a close watch on developments in the Middle East, as geopolitical factors can also influence market movements.

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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