Morning Color

June 5, 2025

Good Thursday morning,

Another very volatile day in the markets Wednesday, and the bulls won the day. Until we see certain levels to the downside being taken out, buyers are still in control. The S&P is less than 3% from prior all time highs, and it is quite a difference from where we are now compared to the April 7th lows, when it seemed the world was ending as we know it! There are still tariff uncertainties in front of us, and many analysts and economists say the U.S. economy is slowing, but even with all that being said, the markets are holding up rather well! The $64,000 question is: "Will it last!?"

Futures just ripped higher after headlines crossed that President Trump and China's Xi Jingping are holding a call regarding tariffs. Gains and losses come very quickly as traders and investors are still operating on a hair trigger, and that was just another perfect example. Price has moved outside of prior day's range but will it hold? Overnight inventory is mixed, but this sharp move higher have shorts scrambling to cover and traders on the sidelines have to chase. Once the bell rings, the important levels are there to watch.

In the profile and key levels below, price is now above the POC, half-back and close to the Value Area High, so that in and of itself is a bullish edge. However, will this buying hold?! If price stays above 5990.75, then that is a tell that the bears could be squeezed further, so look for upper targets. If price movers back below 5990.75, then 5986, then look for overnight lows and yesterday's low at 5974-5971. A break of that range should then look for our lower targets at 5965-5955, and further selling could see price move down to 5940 then 5910.

Now, if buyers keep up their operations and take price higher over 5999 and stay there, then look for our upper targets at 6005-6015. YOU MUST STAY FLUID TODAY!

Futures are currently trading at 5992 at the time of this writing.

VPOC Update: No new VPOC's added or taken out yesterday, however, the closest one above at 6006 could be in play today. We still have 5 above and 22 below!.

TARGETS AND KEY LEVELS TO WATCH:

/ES upside target is: 6005 - 6015

Key Levels: 5990.75 POC then 5986 1/2 Back & VAL

downside target is: 5965 - 5955

/NQ upside target is: 21,880 - 21,900

Key Level: 21,772 POC

downside target is : 21,650 - 21,620

/RTY upside target is: 2120 - 2125

downside target is: 2080 - 2070

Economic Data : Red /Green Start Event

Challenger Job-Cut Report @ 7:30 AM ET

International Trade in Goods and Services @ 8:30 AM ET