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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.

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