Morning Color

August 8, 2025

Good Friday morning,

There was a sharp liquidation break early in the session yesterday after the big gap higher during overnight trade. Sellers came into the fray to take advantage of the gap and sold futures off; however, prices still remained within Wednesday's range, and that was important! The "value area" was overlapping, which tells us that there is still a standoff between the bulls and the bears, a bit of tug-of-war if you will. Let's see who could win the game heading into the weekend?!

📊 In the profile pic and key levels below, you can see the overlapping value I mentioned, and also the overnight range is rather squat. What all this means is that the buyers had a chance early yesterday to take the gap even higher, and yet they failed. And the sellers, after a big move lower, also failed to keep price down as the bounce from yesterday's low and the move in the overnight session have brought price back to the two VAH's (Value Area Highs), so it is anybody's guess from here. Now even with that being said, we have some very important data points and levels to watch today so fret not!

If price can stay above the very important level of the POC and overnight low at 6,367.50, then the buyers have the edge so look for overnight high at 6,390 to be taken out, then look for upper targets at 6,410 - 6,420. If sellers take out 6,367.50, then look for lower targets of 6,350 - 6,340, and possibly 6,300 - 6,290.

Futures are currently trading at 6,379 at the time of this writing.

🧭 VPOC Update: No new VPOC's were added or taken out yesterday. We still have none above and four below current price.

Current VPOCs: