In partnership with

In yesterday’s letter, we wrote:

This is what happened. The market showed volatility today as it navigated through critical support levels. After an overnight bounce off the key 7740 SPX level (roughly 7760 ES), we quickly lost that support in dramatic fashion, plunging down to the 7711 zone. At the open, we briefly touched a high of day at 7713.95, but was short-lived as we oscillated between 7696 and 7711 before ultimately giving way to a drop down to a low of day at 7688.63, just above the 7682 support. $SPY ( ▼ 0.68% )  $SPX ( ▼ 0.69% )  $ES_F ( 0.0% )

See how well the levels work?

Your AI budget tripled. See real usage patterns with Harmonic.

AI spend just became one of the biggest line items on the P&L. And most teams can't say what it's actually producing.

Harmonic Security maps AI activity to the use cases and teams driving it, showing which tools are earning real productivity, which are shelfware, where sensitive data is going, and how adoption is trending over time. Across approved AND unapproved AI tools.

That's the data you need to show your board exactly where the return is coming from.

See Your AI ROI

Now, as we face the potential for further downside, the question is: where do we find support, and what levels should we watch closely? What key resistance must we reclaim to regain bullish sentiment?

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 loss of the critical 7740 level has put us on shaky ground and losing the must hold led to a sharp drop, highlighting the importance of being prepared. Always trust the levels.

Now we are sitting in after hours right on the key 7690 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 marked another .7% drop, underscored by elevated volume, indicating strong selling pressure.

Looking ahead to tomorrow, there’s oil data in the morning, followed by the release of FOMC meeting minutes from the prior meeting. This information could be crucial in understanding the trajectory of interest rates moving forward.

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.

Subscribe to Premium to read the rest.