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In yesterday’s letter, we wrote:

This is what happened. After a dip overnight, we successfully defended the crucial 6762 SPX level after losing 6780. This set the stage for a bounce back above 6780, but once the market opened, we struggled to maintain that level. Another drop took us down to the low of day at 6759.74 (RIGHT AT 6762 again) before we regained our footing and surged past significant resistance levels (through 6801, 6818, 6837 and nearly to 6852) to reach a high of day at 6845.08. Then we dropped in the afternoon, defended 6780 several more times and closed RIGHT on it at 6781.48. $SPY ( ▼ 0.13% )  $SPX ( ▼ 0.08% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, as we prepare for tomorrow’s CPI data release, where do we go from here? What levels must we hold to avoid further downside, and where are the key targets if we break out above?

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 and subsequent recovery of 6780 were key indicators of which way we were about to move. Always trust the levels.

Now we are sitting in after hours right on the key 6788 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 price action showcased a good range day, with consolidation on elevated but lower volume compared to yesterday. This suggests that while there may be some indecision in the market, traders are still active and watching closely.

Looking ahead, all eyes will be on the CPI data before the open, along with at least one FOMC member speaking and a 10-year bond auction in the afternoon. These events could significantly impact market sentiment and price action, so staying alert and prepared will be essential.

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 can not 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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