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In Friday’s letter, we wrote:

This is what happened. We quickly lost the critical 7692 level we were monitoring. After a brief rejection from below, we fell close to 7670, which acted as a key support level. We managed to bounce back momentarily, but the inability to reclaim 7692 led to a day filled with chop, with that level acting as resistance for much of the session. Ultimately, we closed near the low of the day at 7667, right at our designated 7670 support. $SPY ( ▼ 0.55% )  $SPX ( ▼ 2.73% )  $ES_F ( 0.0% )

See how well the levels work?

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Now, as we look ahead, we must consider how deep the pullback may go. What levels need to hold (and recover) to prevent further downside?

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 7692 was key and gave direction to the day with the inability to recover and acting as a resistance ceiling. Always trust the levels.

Now we are sitting in after hours right on the key 7673 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’s market saw a .6% drop on solid volume following the holiday, indicating that sellers were active.

As we prepare for tomorrow, we have crucial employment data being released before the open, as well as a 10-year bond auction in the afternoon. These events could significantly impact market dynamics, so it’s essential to stay alert and adjust our strategies according to the unfolding data.

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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