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Market Analysis - 02.26.2020

We provide key support and resistance levels for the following futures products daily:

Crude Oil (/CL)

S&P 500 (/ES)

NASDAQ (/NQ)

Natural Gas (/NG)

Euro (/6E)

British Pound (/6B)

 

CRUDE OIL


Key Support Levels:

49.31

49.10

48 - GEX


Key Resistance Levels:

49.66

49.97

50.56

51.33

52 - GEX


Auction Profile:

Down auction

 

S&P 500


Key Support Levels:

3116.50

3100 - GEX

3091


Key Resistance Levels:

3143.25

3156.50

3189.75

3200 - GEX

3221.50


Auction Profile:

Down auction

 

NATURAL GAS


Key Support Levels:

1.862

1.841

1.812

1.8 - GEX

1.778


Key Resistance Levels:

1.957

1.95 - GEX

1.901


Auction Profile:

Range bound

 

NASDAQ


Key Support Levels:

8800 - GEX

8731.75

8611


Key Resistance Levels:

8931.25

8983.50

9000 - GEX

9034


Auction Profile:

Down auction

 

EURO


Key Support Levels:

1.07962

1.08151

1.085 - GEX

1.0858

1.0889


Key Resistance Levels:

1.09 - GEX

1.09355

1.095

1.09751


Auction Profile:

Up auction

 

BRITISH POUND


Key Support Levels:

1.2865

1.29 - GEX

1.291

1.2926


Key Resistance Levels:

1.2948

1.2972

1.3 - GEX

1.3007

1.3053


Auction Profile:

Range bound

 

FINAL THOUGHTS


Crude oil futures are trading far below the previous value area denoting strong seller conviction. Currently, the price has strong support around 49, including elevated gamma exposure there. If price breaks below that area, expect a strong surge of selling to follow.


S&P futures as well as NASDAQ had huge downward movements yesterday as the outlook on the impact of the #coronavirus on global economies begins to hit home, with traders no longer betting on a near term recovery. Without some strongly positive news as a catalyst for risk on, expect both these contracts to remain subdued with likely movement downward.


Natural gas futures are currently out of balance, trading slightly above the previous value area. This indicates low conviction to the upside. While higher movement is the more likely outcome, there is no strong conviction on directional movement.


Euro futures have overtaken resistance to the upside of both the previous value area and resistance at 1.0889. This shows stronger buyer conviction, but the slow movement upward shows that this move lacks any real momentum. Possible upside potential here, but limited at best.


After beginning the overnight session within previous value, British pound futures have sunken well below that level. The strong push to the downside illustrates strong seller conviction. Look for range extensions downward throughout the day, especially if support at 1.2926 is broken.

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