In yesterday’s letter, we wrote:

This is what happened. The key levels provided excellent guidance today as we dipped and defended 6003 in early after hours, bouncing 30 points to 6033, and then repeating this successful pattern in the regular session after dipping and defending at 5991. Then we had the morning reclaim of the 6003 level, which turned out to be an excellent long entry. Following that, we rallied impressively, reaching just below the 6081 target, with a high of 6074.54 at the close.

See how well the levels work?

Now that we had the big bounce, where do we go from here? What levels are critical when FOMC data and the press conference hit and where must we hold to continue this move higher?

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 reclaim and defense of both 5991 and 6003 were key long entries for the move all the way to 6074. Always trust the levels.

Now we are sitting in AH right on the key 6060 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.

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Don’t miss the Topic Directory - Getting lots of questions that are answered in here.

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Trading Plan

Now, as we reflect on today's significant rally, it’s essential to note that this came back from yesterday's major drop but on much lower volume. This raises the question of sustainability.

Tomorrow brings the FOMC meeting, where the interest rate decision and the press conference will be central talking points. We must stay alert for potential reversals or volatility during and after the Fed's statements, as these could significantly impact market momentum.

Keep an eye on these developments as we navigate through another eventful trading day!

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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