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In yesterday’s letter, we wrote:

This is what happened. We saw an overnight dip to 5902, defense as anticipated, and then a rally of over 40 points. During the regular session, following the JOLTS data release, we saw a dip to exactly 5929, which was the low of the day, before propelling higher by another 50+ points. The breakout above 5969 held into the close, demonstrating strong bullish sentiment. $SPY ( ▼ 0.24% )  $SPX ( ▼ 0.22% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now that we’ve had another leg higher and held the breakout into the close, where do we go from here? Is SPY set for another major rally? Where must we hold to keep that case alive?

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 5902 defense and the 5929 (exact) defense during the regular session where the key indicators that long was the right move. Our goal is to get positioned early the correct direction, these levels allowed for this. Always trust the levels.

Now we are sitting in AH right on the key 5969 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.

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 rally was impressive, though it came on lower volume, which is something we should keep an eye on moving forward. Lower volume can sometimes indicate a lack of conviction in the move, so it's essential to monitor how this develops.

For tomorrow, we have more employment data on the calendar, along with PMI readings and at least two FOMC members scheduled to speak. These events could influence market sentiment, so be prepared for potential volatility.

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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