In partnership with

In yesterday’s letter, we wrote:

This is what happened. Overnight we initially defended the 5645 SPX level and rallied 40 points only to give it all back into the open. Then, after breaking below 5645 early in the session, we dipped down into the low 5600s, which was a clear signal for potential shorting opportunities. Levels played out as anticipated, but the market remained stagnant, sitting around the low 5600s for most of the day. Once we had the break of 5645 the clear signal and direction of the market was on.

See how well the levels work?

Now that we gave back Monday’s gains, what will FOMC bring? Can we hold onto Friday’s bounce and what key levels must hold to prevent a deeper sell?

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.

Levels were spot on for the short after losing 5645. Then, we just chopped in tight range as we await FOMC. Always trust the levels.

Now we are sitting in AH right on the key 5607 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

The overall sentiment seems to be in a wait-and-see mode as we approach the FOMC meeting for the rate decision, statement, and presser, which are the critical components to watch. Today's sell-off of about 1% occurred on lighter volume, suggesting traders are cautious ahead of upcoming economic events.

Tomorrow could see potential reversals as the presser concludes, so keep an eye on the key levels as we navigate through this period of uncertainty.

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.

Subscribe to Premium to read the rest.