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In yesterday’s letter, we wrote:

This is what happened. The market showed impressive strength today, bouncing back above critical support levels and closing near the highs. The dip and defense at the 7421 SPX level exact (7481 ES) was beautiful, leading to a strong rally that pushed through 7442, 7453, and 7482, culminating at a high of day of 7508.29. $SPY ( ▲ 0.75% )  $SPX ( ▲ 0.78% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now that we’ve reclaimed these crucial levels, the focus shifts to maintaining support and where to target for potential profit-taking. What level should we be ready to defend for continued bullish momentum, and how should we position ourselves for any potential pullbacks?

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 dip & defense at 7421 was a prime example of the supports and led to a massive run. Always trust the levels.

Now we are sitting in after hours right on the key 7490 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.

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

Today’s move upward marked a substantial .8% increase on average volume, indicating solid participation from buyers.

Looking ahead to tomorrow, we have important jobs data scheduled for release before the open, which could provide additional market direction. Additionally, Fed Chair Warsh will be delivering a speech, and his comments will be crucial in shaping market sentiment. Traders should remain alert to these events as they could lead to volatility and trading opportunities.

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 don’t have to 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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