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.