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In yesterday’s letter, we wrote:

This is what happened. Today’s market action exemplified the levels we were monitoring. The CPI release before the open brought us to a swift dip that tested and defended the 7381 support. Then in the regular session we gave it up and dropped below 7366 and 7344-the key hold, we found support at the low of the day, which was 7338.54. This level held, allowing for a remarkable recovery that propelled us back through all the previously lost supports and above 7401, closing right at this key support level.. $SPY ( ▼ 0.15% )  $SPX ( ▼ 0.16% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now, moving forward, we need to ask ourselves: can we maintain this bullish momentum? What levels should we monitor closely for potential reversals or further gains?

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 dip & defense at 7344 in the regular session was a perfect example of the power of support levels and entering when risk was worth it. We ran 60+ points from the key support. Always trust the levels.

Now we are sitting in after hours right on the key 7395 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.

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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 dip and defense at 7344 was pivotal and led to a massive run that closed us nearly flat on this massive range and high volume day.

As we look ahead to tomorrow, we have PPI data set to release before the market opens, along with a 30-year bond auction in the afternoon and the Fed chair nomination vote. These events could significantly impact market sentiment, so remain alert and adaptable to the evolving landscape.

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 don’t have to 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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