In yesterday’s letter, we wrote:

This is what happened. Today’s trading session was quite the rollercoaster. First, we lost the critical 6844 support overnight, which initiated a significant drop, pushing the SPX down through 6772 and further. By the time the market opened, we tried to recover that key support but had to have one more quick dip first to low of day 6710.42 before we managed to pivot and recover higher supports. The recovery was impressive as we climbed back through 6785, 6804, 6830 and even approached 6844 again, with a high of day at 6840.05. $SPY ( ▼ 0.88% )  $SPX ( ▼ 0.94% )  $ES_F ( 0.0% )  

See how well the levels work?

Now, with another massive leg lower but much of the move already recovered, what levels should we watch closely? Where can we expect the market to react, and where might we see further downside?

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 6844 led to a deep flush with regular session building back on those supports level to level. Always trust the levels.

Now we are sitting in after hours right on the key 6804 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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Trading Plan

Today was a 1% down day on heavy volume, which indicates strong participation in the market.

As we look ahead to tomorrow, keep an eye on potential news coming from the Middle East, along with employment data before the open and Services PMI just after the market opens. These events could have significant implications for market direction.

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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