Wednesday May 20 2026 SPY SPX ES Actionable Levels

$SPX loses critical support and drops after reconfirmation test from below. Is $SPY set to give up its big gain?

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In yesterday’s letter, we wrote:

For tomorrow, we’re closely watching the key SPX levels of 7376, 7391, 7414, and 7440. If we lose 7391 and can’t bounce back above, we’ll flip short for a move to 7376 and 7357, with 7339…on deck should those supports fail.

This is what happened. Today’s market action was defined by significant volatility as we navigated through key levels. We initially saw a strong defense of the 7376 level overnight, but ultimately that support gave way. After a brief recovery at 7357, we faced further declines, touching 7339 before a bounce took us back up to the high of day at 7395.32 - right at the 7391 key support. However, the rejection at 7391 led to a drop below 7357 as we approached the close. $SPY ( ▼ 0.67% )  $SPX ( ▼ 0.67% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now that we’ve lost critical supports - how do we proceed from here? What are the next critical levels to watch, and where can we find potential entries for both long and short positions?

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 7391 as well as the rejection from below in the regular session were key indicators of where we were headed-lower. Always trust the levels.

Now we are sitting in after hours right on the key 7351 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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Trading Plan

The day’s price action reflected a nearly .7% drop on high volume, highlighting the sellers’ control.

As we look towards tomorrow, we have the FOMC meeting minutes being released, which could provide insights into future policy decisions. Additionally, it’s important to keep an ear open for any developments from the White House regarding tensions with Iran, as these could also impact market sentiment and direction.

Overall, it’s crucial to remain vigilant and prepared for potential volatility as we navigate through these key levels.

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.

For tomorrow, we’re closely watching the key SPX levels of…

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