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In yesterday’s letter, we wrote:

This is what happened. The market opened strong, starting the day at the key level of 7805 (also low of day), which we had identified as critical. From there, we saw a solid rally through 7825, approaching our resistance target of 7853 before the market began to consolidate and drift lower into the close. $SPY ( ▲ 0.57% )  $SPX ( ▼ 8.23% )  $ES_F ( 0.0% )

See how well the levels work?

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Now, with the market having tested key resistance levels and then taking a breather into the close, what should we be looking for next? Where can we expect potential pullbacks, and what levels must we hold to maintain this bullish momentum?

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 low of day at key 7805 and push through 7825 were key moments that led and pointed the direction of the day. Always trust the levels.

Now we are sitting in after hours right on the key 7822 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

The day’s .58% move higher, despite lower volume, suggests that while the upward momentum is still present, the market may be losing some steam.

Tomorrow brings the release of the FOMC meeting minutes from the last meeting, which may provide insights into future monetary policy and impact market sentiment. Additionally, a 10-year bond auction is scheduled, adding further potential volatility to the trading day. It’s essential to stay alert and responsive to these developments.

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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