Morning Color

June 4, 2025

Good Wednesday morning

Yesterday, key levels held, upper targets were hit, and another new VPOC was added below. The bulls stepped up and defended their edge- but will they be able to do it again today?! The jury is out and it now looks like a coin toss. And I say that because futures were higher, but the private ADP Payroll Report was just released, causing futures to flush hard on the numbers and turned negative across the board. Only 37K jobs were added, well below the consensus estimate of 151K! Once again, we have several critical levels to watch, so let's get right into it.

In the profile and key levels below, you can see the first critical level of the POC at 5981.50. Futures are right around that level now. If this can hold, the look for a retest of prior high at 5991.25, and then overnight high at 5996.75. If that level is taken out, then we could look for upper targets at 6015-6025 and then 6045-6055.

However, if sellers continue stepping up their operations, then the next critical range is 5968.50 - 5965, which is also the top of our lower target range. This is the top of the single prints, VAL (Value Area Low), and yesterday's half-back. If that range gets breached to the downside, and we take out 5965-5955, then the next stop would be 5935 - 5925.

Futures are currently trading at 5978 at the time of this writing.

VPOC Update: As mentioned, 5960 was in play and got taken out, and another new VPOC was added below at 5905.25. We now have 5 above and back to 22 below!

TARGETS AND KEY LEVELS TO WATCH:

/ES upside target is: 6015 - 6025

Key Levels: 5981.50 POC then 5968.50 - 5965 top of single prints, VAL & 1/2 back

downside target is: 5965 - 5955

/NQ upside target is: 21,820 - 21,850 then 21,875 - 21,900

Key Level: 21,635 1/2 Back and 21,628 VAL

downside target is : 21,550 - 21,520

/RTY upside target is: 2125 - 2135

downside target is: 2085 - 2075

Economic Data : Red /Green Start Event

MBA Mortgage Applications @ 7:00 AM ET

ADP Employment Report @ 8:15 AM ET