Traders' Update: S&P 500 Futures (ES) with order flow analysis

Testing Key Support Level

S&P 500 futures are currently trading near 6,858, which serves as an important reference point. This level represents yesterday's value area low and is a naked level that hasn't been fully tested. Such areas often attract attention as potential reaction zones.

State of Selling Pressure

According to the current order flow analysis, sellers remain in control, yet panic selling has not been observed. Despite a relatively balanced buy and sell activity, sellers are more aggressive, leading to a continued drift lower in prices.

Key Levels to Watch

The significant levels to focus on include: - 6,858: Current test zone and yesterday's value area low. - 6,869: Yesterday's point of control, a potential first upside target if prices stabilize. - 6,885 to 6,891: Today's value area low and VWAP zone; reclaiming this area could enhance short-term bullish prospects.

Scenarios to Consider

If price holds above 6,858, a tactical bounce is likely, while a drop below this can indicate continued selling pressure, suggesting a search for the next lower liquidity pocket.

Conclusion

The order flow currently shows sellers in control, but as price tests the 6,858 support zone, traders should focus on how price reacts and whether selling pressure intensifies or diminishes.