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In yesterday's letter, we wrote:

This is what happened. After we drifted down in futures trading overnight, we defended precisely off the 5960 SPX level to open the day flat. After an opening bounce, we swiftly lost the 5971 support and it was clear the sellers were still in control.

We fell all the way to final downside target listed, with the low of the day at 5908.49, just 51 pennies below that 5909 support target.

See how well the levels work?

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Now that we had yet another move lower on even higher volume, where do we go from here? Was the bounce back above 5950 into the close significant? Where must we reclaim to stop the bloodshed?

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 tremendously well as once 5971 failed, we ultimately reached a low of 5908.49 before bouncing back and closing just above the 5950 resistance. Always trust the levels.

Now we are sitting in AH right on the key 5962 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 significant, marking a major continuation and dip on even higher volume, which was the third highest of the year. It’s worth noting that we had a solid defense off the 5909 support level, providing some hope for a potential bounce.

Looking ahead, tomorrow is set to be action-packed with two FOMC member speeches, G20 meetings starting, and new home and oil data being released during the session. Traders should be prepared for potential volatility as the market reacts to these events.

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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