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In yesterday’s letter, we wrote:

This is what happened - we again got both moves. What transpired today was nothing short of dramatic. Yesterday, after a hard bounce from levels last seen in early 2024, buyers attempted to step in. After hours we did not lose the key 5087 and we rallied right up the levels and by the open of the regular session we hit 5193 - right above the 5191 target. This allowed a rally to a high of 5267.47, just above our target of 5265 target. Unfortunately, we could not maintain the momentum and experienced a steep decline.

I had highlighted that if we lost 5087, we could expect a move down to 5073 and below. And indeed, we fell through all support levels, touching a low of day near the close at 4910. This marked a significant drop of 260 points from the failure at 5200, showcasing a volatile session with a swing of almost 7% from high to low. $SPY ( ▲ 0.14% )  $SPX ( ▲ 0.13% )  $ES_F ( 0.0% )  

See how well the levels work?

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See how well the levels work?

Now, as we look ahead, we must consider what support we will need to reclaim to stabilize the market.

More in the trade plan below.

Sample of today’s levels and commentary:

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

The levels provided the map for the rally potential if we held key supports and where the short would trigger. Both of these played out today. Always trust the levels.

Now we are sitting in AH right on the key 4931 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's overall volume was notably lower, on par with last Thursday, despite the large swings we witnessed.

Tomorrow brings the 10-year bond auction, FOMC Minutes in the afternoon, and at least one FOMC member speaking during the regular session. We should also be vigilant for any market-moving news (or even rumors!) regarding tariffs or international dealings, as these could have significant implications on price action.

As always, remain cautious and prepared for any volatility as we navigate through these uncertain times.

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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