Morning Color

July 18, 2025

Good Friday morning,

Bulls are still living in paradise as more new all-time highs were hit yesterday in the NASDAQ and S&P. There seems to be no end in sight for this rally, but this is no time to get complacent! Stick with winners, obviously, but have a plan in place to lock in gains when the tide turns. And trust me—it will at some point, though I don’t know exactly when. For the time being, let’s pay close attention to the game plan laid out below.

📊 In the profile pic and key levels below, price is trading close to prior highs around 6,345. This will be the first important level to watch. If price stays above this point, the edge remains with the buyers. First upside target is the overnight high at 6,357, then our upper targets at 6,370–6,380. Further buying pressure could see 6,400–6,410!

If sellers take price back below 6,345, there could be some very choppy price action just below, because we have the POC at 6,342, the overnight low, and a first set of single prints around 6,338. This range will be very important moving forward. If those levels hold, we could see a bounce back up over the prior high. If that range is lost, then look for further liquidation to our lower targets, which include a second set of single prints, prior day’s halfback, and the VAL (Value Area Low) at 6,325–6,315.

Futures are currently trading at 6,349 at the time of this writing.

🧭 VPOC Update: Another busy day yesterday, as the new VPOC above at 6,310 was taken out and a new VPOC was added below at 6,283.50. We now have four below current price and none above.

Current VPOCs: