Wednesday May 21 2025 SPY SPX ES Actionable Levels

$SPX loses critical support and falls lower then defends key support and bounces. How much lower could $SPY drop?

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SPY Options
May 20, 2025

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In yesterday's letter, we wrote:

❝

For tomorrow, we're closely watching the key SPX levels of 5942, 5924, and 5910. We are not top callers, and we never will be. Trying to call the top or bottom would have led most traders to miss out on this enormous rally. The trend remains intact, and as long as we hold 5942, we want to continue looking for long opportunities. This could come from a dip and defense of 5942, a bounce off 5924, or even a direct defense of 5910. Any of these setups could offer strong long entries.

If we do lose 5942, you could try a quick short to 5924 or 5910—but as already mentioned, be ready to flip long on any strong defense or reclaim of those levels. If we lose 5910 convincingly, the downside opens up a bit more, targeting 5888, then 5854, 5838, 5823, 5811, and finally 5800.”

This is what happened. As the session opened, we quickly lost the 5942 level, which I highlighted as critical. We took a short position on that loss, and the market responded exactly as anticipated, moving down through 5924 and hitting our target at 5910. After hitting this support level, we saw a strong defense, which triggered a long opportunity that allowed us to rally back up through 5924 and reclaim 5942 precisely, closing right at that level. The day’s action followed the plan written in the paragraphs above pretty exact. $SPY ( ▼ 0.34% )  $SPX ( ▼ 0.46% )  $ES_F ( 0.0% )  

See how well the levels work?

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Now that we’ve seen this move lower, where must we hold to prevent a much deeper cut? Where do we need to reclaim to spike another leg up?

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, the 5942 loss triggered the short and the 5910 defense (exactly) triggered the long which ran (no surprise) exactly to 5942. Always trust the levels.

Now we are sitting in AH right on the key 5937 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 good dip and defense consolidation on lower volume, suggesting a bit of hesitation in the market.

Tomorrow, we have day two of the G7 meetings and at least two FOMC members set to speak, which could influence market direction. Keep an eye on any updates or statements that may arise during these events, as they could lead to increased 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.

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

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