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In yesterday’s letter, we wrote:

This is what happened. Today’s market activity was marked by choppy consolidation, but the key levels we highlighted held strong. After defending 6951 overnight, we saw a nice rally that approached our target of 7001 before dipping slightly ahead of the open. During regular trading hours, multiple defenses at 6951 allowed the market to push towards the 6989 target, demonstrating resilience. As the day progressed, we encountered another pullback but managed to defend our crucial 6938 level perfectly (low of day 6938.77), which provided a solid long entry. This defense set us up for a late-day surge towards 6966, affirming the bullish bias as long as supports continue to hold. $SPY ( ▼ 0.23% )  $SPX ( ▼ 0.42% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we look ahead, the focus shifts to the major economic data releases scheduled for tomorrow. Which levels must we hold to maintain this trend and where are the next targets?

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.

Both the multiple defenses at 6951 and exact low of day defense at 6938 are prime examples of supports doing their job. Always trust the levels.

Now we are sitting in AH right on the key 6958 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.

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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 activity showcased a strong consolidation day, with initial tests of higher levels overnight followed by successful defenses of lower supports. This dynamic kept the market within a favorable range.

Looking forward, we have PPI data and retail sales figures due before the open, alongside speeches from at least five FOMC members throughout the day. These events could significantly impact market sentiment, so it’s essential to remain agile and ready to adjust our strategies as needed.

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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