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In yesterday’s letter, we wrote:

This is what happened. We witnessed a strong defense of 6434 overnight with a decent bounce, but once it was lost during the regular session, the inability to reclaim it led to a drop through our downside targets, hitting a low of 6400.22 before a bounce into the close, settling right at the 6412 level. $SPY ( ▲ 0.25% )  $SPX ( ▲ 0.21% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, with the market dynamics shifting, we need to focus on what’s next. Will we see more downside action, or can we find a way to recover? What key levels must we watch in the coming days?

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 defense and later failure of the key 6434 level led to a drop through the targets, initial defense at 6402 and then bounce to 6412 into the close. Always trust the levels.

Now we are sitting in AH right on the key 6413 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.

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Trading Plan

Today we experienced a decent drop of 0.6% on higher volume, indicating some selling pressure in the market.

Looking ahead, tomorrow's agenda includes the FOMC meeting minutes in the afternoon and at least two FOMC members speaking during the regular session. This will set the stage for Jackson Hole and Friday's all-important Powell speech, which could greatly influence market sentiment moving forward. It's crucial to stay vigilant as we navigate through these pivotal events.

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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