Market Analysis - 03.06.2020

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 - GEX

43.76


Key Resistance Levels:

45

45.67

46.63

47

47.86

48 - GEX


Auction Profile:

Down auction


/CL futures are down dramatically following the overnight session. Strong seller conviction has entered the market. Continued downside price action is the most likely outcome with the next level of resistance coming around 42.36.

 

S&P 500


Key Support Levels:

2881.75

2900 - GEX

2925


Key Resistance Levels:

2958.50

3000 - GEX

3026.25

3049

3058

3116.50


Auction Profile:

Down auction


/ES futures fell well below the previous value area during overnight trading. This indicates a changed perception of value with the likelihood of a follow through lower.

 

NATURAL GAS


Key Support Levels:

1.655

1.7

1.74

1.65 - GEX

1.778


Key Resistance Levels:

1.802

1.841

1.884

1.918

1.90 - GEX


Auction Profile:

Down auction


/NG futures are trading in a narrow range far below their previous value area. Strong rejection continued at 1.841 yesterday and finally convinced sellers to enter the market strongly. A further move to the downside is the most likely outcome for today, but the narrow range of today's auction rotation lowers that conviction.

 

NASDAQ


Key Support Levels:

8168.25

8262

8300 - GEX


Key Resistance Levels:

8436.50

8500 - GEX

8611

8731.75

8837.50


Auction Profile:

Down auction


/NQ futures are markedly lower following the overnight session. The wide value area with strong movement downward shows seller conviction is high. Expect these contracts to continue their march to the downside today.

 

EURO


Key Support Levels:

1.11757

1.11957

1.12 - GEX

1.12125

1.12635

1.1293


Key Resistance Levels:

1.1344

1.13704

1.14 - GEX

1.143


Auction Profile:

Up auction


/6E futures pushed higher overnight as they remain negatively correlated to the indices and commodities. The wide value area with almost no overlap with previous value area forecasts larger upside moves to come.

 

BRITISH POUND


Key Support Levels:

1.27

1.2763

1.2785

1.275 - GEX


Key Resistance Levels:

1.2841

1.2865

1.2882

1.2897

1.2917

1.2938

1.2972

1.305 - GEX


Auction Profile:

Up auction


/6B futures continued their strong price action to the upside overnight. Wide current value area in relation to previous value area indicates the likely possibility of a move higher. There is strong resistance, however, around the 1.3007 area. If the British pounds cannot break their overnight high, look for a quick short trade to the downside.

 

FINAL THOUGHTS


I can't emphasize volatility enough. I have to keep saying it because it is the main driver of the market currently. /ES gamma exposure just dropped into the negative again, which means large price swings will continue to occur. Successfully scalping is possible in this environment if you wait for the right conditions to appear.

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