Morning Color

June 3, 2025

Good Tuesday morning,

The tug-of-war between the bulls and the bears continues, and the roll of the dice yesterday gave a slight edge to the buyers. After a sharp liquidation break following the ISM Manufacturing Index released yesterday morning at 10:00 a.m. EST, buyers stepped back in and recovered all the day's losses, turning the market back to green. They weren't large gains, but gains nonetheless, and upper targets were hit.

Unfortunately, today remains "foggy"—overnight losses have diminished; however, the bulls need to show strength above key levels for me to continue to give them the edge. Coming into today, I see some very clear and important levels to watch, which will either confirm or deny this bullish edge. Please pay attention to the details below

In the profile and key levels below, you can see the critical level of 5933. This is the top of the single prints, which separates yesterday into two distributions, and also VAH (Value Area High). As long as the price can remain above that level, then the bulls will have the edge. However, if sellers take price below 5933, they they could send price all the way back to 5910 - 5900, where there are additional key data points. At that level, we have the overnight low, half-back from yesterday, as well as the POC (Point of Control), which is why this area represents our lower targets. IF sellers push price even lower under 5900, then look for 5880-5870.

Futures are currently trading at 5940 at the time of this writing.

VPOC Update: No new VPOC's were added or taken out yesterday, but 5960 is in play today. We currently have 6 above and 21 below.

TARGETS AND KEY LEVELS TO WATCH:

/ES upside target is: 5975 - 5985

Key Levels: 5933 Top of single prints and VAH

downside target is: 5910 - 5900

/NQ upside target is: 21,675 - 21,700

Key Level: 21,489 - 21,475 Single Prints

downside target is : 21,400 - 21,370

/RTY upside target is: 2095 - 2105

downside target is: 2065 - 2055

Economic Data : Green Start Event