Morning Color

August 6, 2025

Good Wednesday morning,

There was a strong liquidation break yesterday, which retraced most of Monday's move higher (almost 80% of it), but buyers stepped in to stop the selling, and the markets closed within Monday's range. We had a “p” pattern on Monday and a “b” pattern on Tuesday. This tells us that traders were overly short heading into Monday, and overly long heading into Tuesday. You can see the excess and spikes in the profile pic below. This tells me that the move from here is a gamble, unfortunately—meaning it's anybody's guess. I hate to say that because I usually have a high conviction bias either long or short, but this current market could go either way. So stay alert and remain very fluid—ready to trade both long and short!

📊 In the profile pic and key levels below, you can see the “p” and “b” structure in the profile. Futures are trading almost in the middle of the two-day range, so it’s a coin toss. That being said, you can see the important levels that will tell us whether buyers or sellers are taking control.

The first key level is the POC at 6,326. Any price action that stays above that level will offer a short-term edge for buyers, and the next key level would be the bottom of the spike at 6,349.50. Any movement above that, we’d look for upper targets at 6,360–6,370.

If sellers take price and keep it below 6,326, then a loss of the overnight low and prior day low at 6,315 would suggest lower targets at 6,300–6,290.

Futures are currently trading at 6,340 at the time of this writing.

🧭 VPOC Update: No new VPOC's added or taken out yesterday. We still have one above and four below current price.

Current VPOCs: Those in BOLD are above current price