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In yesterday’s letter, we wrote:

This is what happened. Overnight we lost the key 7460 level. This pivotal breakdown set the stage for a sharp drop, bringing us to a low of day at 7347.6 right at the opening bell. Despite this initial drop, the market showed resilience as we defended off the open and managed to recover to 7358 and 7375, creating a brief rally that took us through 7388 and even tested 7401. However, the inability to hold above 7401 led to further selling pressure, and we spent most of the day in sideways chop around our final downside support target of 7375. The day’s action illustrates the importance of maintaining discipline and adhering to our levels. $SPY ( ▼ 1.45% )  $SPX ( ▼ 1.44% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we navigate this volatile environment, we must be vigilant about the next key levels. Where must we bounce back to feel good about longs?

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 loss of 7460 was the critical moment that changed everything structurally and we had the cascade down 100+ points. Always trust the levels.

Now we are sitting in after hours right on the key 7376 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 was a massive 1.3% down day on heavy volume, indicating strong selling interest.

Looking ahead to tomorrow, we have new home sales data and bank stress test data scheduled for after the close, which could further influence market dynamics and trading strategies.

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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