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In yesterday’s letter, we wrote:

This is what happened. After a pre-opening dip brought us to 5497, we defended, and rallied all the way up to the 5571 (5571.95 high of day) before rejecting and consolidating into the close at this key breakout point. Ok ok, we were .95 pennies off! $SPY ( ▲ 0.63% )  $SPX ( ▲ 0.58% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now that we put in another consolidation day with a small punch higher - where do we go from here? What levels above must reclaim to give protection for longs? What levels below are worth shorting if lost?

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 levels played out beautifully today. After the overnight dip at 5497, we rallied to 5524, which was a critical level for our trading plan, and then pushed up to a high of 5571.95 before rejecting and consolidating at this key breakout point. Always trust the levels.

Now we are sitting in AH right on the key 5562 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 was a range day that ended positively on decent volume.

For tomorrow, we have GDP, employment data, and pending home sales to keep an eye on.

These events could create additional volatility, so be prepared to adjust your strategies accordingly. Tomorrow’s data could significantly impact our current trajectory, especially after the strong moves today.

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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