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In yesterday's letter, we wrote:

This is what happened. 5946 was a critical pivot we fluctuated around for much of the day. Once we finally lost it completely, we saw a significant drop down to a low of 5890.68, just above the key level of 5888 that we outlined yesterday.

See how well the levels work?

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Now, with a significant sell-off today on high volume, we must evaluate our next steps. Where is the level that we must reclaim to put an end to the selling? What is the next critical support below that must hold?

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.

Today, we traded the first failure of 5946, which subsequently brought us down to 5925.

Levels were fantastic. We continued chopping around the key 5946 where we said we would engage. It took its time to determine which direction it was going to go but once it did it fell to 5890 right at the 5888. Always trust the levels.

Now we are sitting in AH right on the key 5910 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.

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 economic data with unemployment figures and a 30-year auction, but all eyes will be on the FOMC meeting minutes released in the afternoon. These details could provide additional insight into the Fed's stance and potentially influence market sentiment. Remember, with Thursday's markets closed, any significant moves could set the tone for the upcoming sessions.

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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