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In yesterday’s letter, we wrote:

This is what happened. Today’s levels played out beautifully. We managed to defend the 7668 level multiple times overnight, and following a swift drop after the opening bell, we maintained support just above at 7677, which was the low of the day. This set the stage for a strong rally that propelled us through the key levels of 7689, 7702 and 7716 ultimately reaching a high of 7736.24, right at our target of 7735. $SPY ( ▲ 0.56% )  $SPX ( ▲ 3.88% )  $ES_F ( 0.0% )

See how well the levels work?

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Now, as we embark on a new trading day, the focus shifts to the FOMC announcement. Will the bullish momentum continue, or will we encounter resistance? What levels must we hold to maintain this upward trajectory?

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 ideal long entries today were realized with a dip and defense at 7668 or a breakout long on the push through 7689, both of which targeted the higher levels of 7702, 7716, and finally 7735. Always trust the levels.

Now we are sitting in after hours right on the key 7719 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.

If you are enjoying this letter, consider sharing with a friend! We even have a referral program where you can earn free subscription time for referring others that sign up for a paid subscription.

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 solid .6% move higher on lower pre-FOMC volume, indicating that the market is gearing up for potential volatility.

Looking ahead, with FOMC set for tomorrow, we should be prepared for increased implied volatility, which could make options contracts more expensive. Pay close attention during and after the press conference, as market reactions can often lead to significant price movements.

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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