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Market Analysis - 03.10.2020

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:

26.05

29.43

32 - GEX

32.10


Key Resistance Levels:

34.50

35 - GEX

35.21

38.02


Auction Profile:

Range bound


/CL futures are up almost 10% during the overnight session but still remain within the previous value area. Even with positive news of economic stimulus packages, expect downside risk to remain elevated.

 

S&P 500


Key Support Levels:

2750 - GEX

2782.50

2800

2815

2855


Key Resistance Levels:

2881.75

2900 - GEX

2925

2958.50


Auction Profile:

Range bound


/ES futures are trading higher overnight as news of economic incentive packages are discussed among lawmakers. This positive sentiment is probably temporary with fear over coronavirus still in the back of traders' minds.

 

NATURAL GAS


Key Support Levels:

1.717

1.74

1.778

1.80 - GEX

1.802

1.841


Key Resistance Levels:

1.86

1.884

1.918

2 - GEX


Auction Profile:

Range bound


/NG futures are up big following the overnight session, completely recovering all losses from the past few days. It's still to early to determine if this is the beginning of a new trend upward or the strong rejection of a range bound market. Moves above 1.87 should be watched closely, as this looks like beginning of trend territory.

 

NASDAQ


Key Support Levels:

8000 - GEX

8168.25


Key Resistance Levels:

8262

8360 - GEX

8436.50


Auction Profile:

Range bound


/NQ futures are also experiencing some positive sentiment as economic stimulus packages are being discussed. As with /ES, expect this sentiment to be short-lived as fear and volatility creep back into the minds of market participants.

 

EURO


Key Support Levels:

1.12 - GEX

1.12125

1.12635

1.1293

1.1344

1.13704


Key Resistance Levels:

1.143

1.15 - GEX

1.156


Auction Profile:

Up auction


/6E futures were down during the overnight session due to positive economic news. Expect short term negative movement until market sentiment shifts lower.

 

BRITISH POUND


Key Support Levels:

1.29 - GEX

1.2938

1.2972

1.3007



Key Resistance Levels:

1.3044

1.3053

1.3073

1.3097

1.31 - GEX


Auction Profile:

Range bound


/6B futures are down overnight with the current value area below the previous one. As with /6E contracts, expect price to remain subdued as long as market sentiment is elevated. Risk to the downside is high in the near term.

 

FINAL THOUGHTS


While volatility has decreased almost 10% from yesterday, it's not going anywhere anytime soon. As I mentioned above, expect this positive shift in sentiment to be temporary. Markets love free money and will be comforted in the short term by these economic initiatives. However, there is still large uncertainty surround the coronavirus's impact on the global economy. This will return to market participants' minds shortly. Be prepared.

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