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In yesterday’s letter, we wrote:

This is exactly what transpired today. The market initially defended the 6048 level, showing strength at the open. However, as the day progressed, selling escalated after we lost that critical level. Once we broke below 6048, the downward momentum picked up, leading us to a low of 6029.89, which was just above the critical support level of 6028.

See how well the levels work?

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Now that we had another sell on volume, how much further will we dip? What levels must hold now and where must we reclaim to feel good about longs?

More in the trade plan below.

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

Levels were awesome. Losing 6048 triggered the expected short move, and it played out almost perfectly, illustrating the importance of adhering to predefined levels in trading. Always trust the levels.

Now we are sitting in AH right on the key 6035 support level. What does this mean and where do we go from here? Read below for my 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

Tomorrow brings more potential volatility as we prepare for the CPI report before the market opens, followed by the 10-year bond auction in the afternoon. Given today’s elevated volume on the daily candle, traders should be cautious and ready for possible market reactions to these economic indicators.

It’s essential to analyze how these reports will impact sentiment and market direction as we head into tomorrow's trading session.

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. profit but will greatly help keep you in a trade long enough to see return.

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