Market Analysis - 02.28.2020
Updated: Mar 2, 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:
42.36
43.76
45 - GEX
Key Resistance Levels:
45.62
47
48.35
49.42
50 - GEX
50.56
Auction Profile:
Down auction
S&P 500
Key Support Levels:
2881.75
2900 - GEX
Key Resistance Levels:
2958.50
2980 - GEX
3000
3069.75
3091
Auction Profile:
Down auction
NATURAL GAS
Key Support Levels:
1.50 - GEX
1.611
1.655
Key Resistance Levels:
1.721
1.76
1.778
1.802
1.841
1.862
1.884
1.90 - GEX
Auction Profile:
Down auction
NASDAQ
Key Support Levels:
8000
8168.25
8250 - GEX
8262
Key Resistance Levels:
8400 - GEX
8611
8731.75
8905.75
Auction Profile:
Down auction
EURO
Key Support Levels:
1.0858
1.0889
1.1 - GEX
1.09355
1.095
1.09751
1.09817
Key Resistance Levels:
1.1027
1.10699
1.10849
1.11182
1.12 - GEX
Auction Profile:
Up auction
BRITISH POUND
Key Support Levels:
1.28 - GEX
1.2865
Key Resistance Levels:
1.2917
1.2938
1.2972
1.3007
1.305 - GEX
Auction Profile:
Range bound
FINAL THOUGHTS
There is no end in sight to the negative GEX for indices. This coupled with the global spread of the #coronavirus will continue to keep volatility elevated in the markets. The virus continues to weigh heavily on world economies causing the decrease in value for indices and commodities, likely until positive news comes out. Keep an eye out for falling daily infection levels out of China as a good catalyst for price reversal. Until the world feels that we have contained the virus, market participants will continue to be anxious which will exacerbate the high volatility we are currently experiencing.
Based on the market structure for /CL, /ES, /NG and /NQ, we will continue to see downward movement as price keeps dropping below previous value area for each of these contracts. Ride the trend until we pierce those previous areas to the upside. As for /6E, the strong upward momentum has stalled as the contracts have entered their previous value area. This could be traders catching their breath for a continued push upward or it could be the beginning of the end of the trend. /6B contracts are still range bound. A meaningful drop below current support could indicate strong selling conviction entering the market. Be patient, as a false breakout is possible.