Morning Color

July 2, 2025

Good Wednesday morning,

Ever feel like you're being watched?!

As we said yesterday , it's a time to lock in gains and be on the cautious side of the markets. It doesn't mean we have to panic and sell everything, but the writing is on the wall! Even though the Dow finished up about 400 points yesterday, the S&P finished down 7, however, the tech heavy NASDAQ was down sharply, about 170 points. Traders and investors are ringing the register in the NASDAQ, as many tech leaders in that space have been hitting new all time highs, day after day, like META, MSFT and NFLX. It just makes sense after such a large move higher that traders are taking profits! We are getting more weakness across the board this morning, and more so in the NASDAQ, so the cautiously bearish call remains for the time being.

In the profile pic and key levels below, price has dropped sharply again off of the overnight highs, and price is now below the key POC and half-back. Levels 6248.75 and 6244.50 will be very important in today's trade! If buyers can push price above those levels, then it will be status quo for the bulls, and they still have a chance to keep prices higher. Any move above yesterday's high at 6261.50 would we then look for our upper targets.

If price stays below the POC and half-back, and then takes out the overnight low at 6235.50, we would then look for prior low at 6227.50, and a loss of that level would we then look for our lower targets of 6215-6205.

Futures are currently trading at 6241 at the time of this writing.

VPOC Update: No new VPOC's were added or taken out Tuesday. We still have three below: 6146, 6019 and 6050.

TARGETS AND KEY LEVELS TO WATCH:

/ES upside target is: 6270 - 6280

Key Levels: 6248.75 POC then 6244.50 1/2 back

downside target is: 6215 - 6205

/NQ upside target is: 22,750 - 22,785

Key Level: 22,700 POC

downside target is : 22,550 - 22,500

/RTY upside target is: 2230 - 2240

downside target is: 2200 - 2190

Economic Data :