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Market Analysis - 01.28.2020

OVERALL MARKET


Yesterday, was a range day for both $CL and $ES as the markets digested all of the #coronavirus news from the weekend as well as started a holding pattern in anticipation of the FOMC meeting on Wednesday.


 

CRUDE OIL


Looking at $CL GEX levels, the market is continuing to price oil futures to stay between $50-55 per contract through March.



Key SR Levels:

Lower support still holding between $51.50-52.

Point of control (fair value) currently ~$52.88.

Upper resistance currently $53.60.


If support is penetrated, look to $51 as the next support level.

If resistance is broken, look to $54.25 as the next resistance level.

 

S&P 500


$ES GEX levels show the market anticipating the contracts to remain between $3225-3280 through the end of the month with large pockets of GEX distributed across different strikes.

Key SR Levels:

Lower support still holding between $3241.50.

Point of control (fair value) currently ~$3250.

Upper resistance currently $3263.50.


If support is broken, next support level around $3227.

If resistance is surpassed, next support level around $3273.

 

OUTLOOK


Both $CL and $ES appear to be in consolidation with a range bound day the most likely result due to the upcoming Fed meeting. Keep an eye out for more #coronavirus news as this could have additional negative impacts on the markets.


As always, stay on your toes and watch for any news catalysts that could cause a change in bias. Control your emotions so they don't control you.

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