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In yesterday's letter, we wrote:

This is what happened. Overnight we came down and touched the 5803/ES or 5751 SPX level that was provided yesterday/above. We defended hard and rallied all the way back up to high of day 5786.85 - a 36 point run and right at the 5787 target provided.

See how well the levels work?

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Now that we had a chop day higher on declining volume, where do we go from here? What levels do we need hold to keep the move higher alive? What level, if lost, would lead to another major leg lower?

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 great as we had already defended the key 5751 overnight and then opened the day with a strong bullish sentiment, defending the flat line within 39 minutes post-opening bell. This led to an impressive run all the way to the high of the day at 5786.95, which is right at the 5787 level provided yesterday.. Always trust the levels.

Now we are sitting in AH right on the key 5780 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 was a nice confirmation of the defense of that key level, providing a minor run on even lower volume. This indicates potential strength but also suggests caution moving forward.

Looking ahead, tomorrow we have at least two FOMC members scheduled to speak during the regular session. Their comments could influence market sentiment, so traders should stay alert and be ready 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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