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Market Analysis - 03.24.2020

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:

20.52

22.39

23 - GEX


Key Resistance Levels:

25.10

26.05

26.50 - GEX

27.45

28.28


Auction Profile:

Range bound


/CL futures are trading in a narrow range above the previous value area. This shows little conviction from buyers and sellers with elevated upside risk. Look for contracts to remain between 22.39 and 25.10.

 

S&P 500


Key Support Levels:

2281

2300 - GEX

2323


Key Resistance Levels:

2411.25

2489

2554

2591.75

2600 - GEX


Auction Profile:

Range bound


/ES futures are once again up due to the anticipation of economic measures by Congress. As mentioned yesterday, this will most likely be a buy the rumor, sell the news event. Expect the market to react negatively once the news if fully absorbed.

 

NATURAL GAS


Key Support Levels:

1.526

1.565

1.60 - GEX

1.611

1.655


Key Resistance Levels:

1.678

1.7

1.717

1.74

1.75 - GEX


Auction Profile:

Range bound


/NG futures surged higher this morning during premarket hours. This indicates a strong conviction from buyers. However, there is strong resistance around 1.678 and 1.70. Expect a push to at least these levels, but due to high volatility, these contracts will most likely remain range bound.

 

NASDAQ


Key Support Levels:

6836.75

7100 - GEX

7169.25


Key Resistance Levels:

7415.50

7500 - GEX

7623

7869


Auction Profile:

Range bound


/NQ futures rose again this morning, alongside the S&P, as investors look forward to stimulus measures being debated by Congress. If passed, expect a surge upward, then a move back downward as markets digest the news and continue to receive updates regarding the spread of the coronavirus.

 

EURO


Key Support Levels:

1.07119

1.07962

1.08 - GEX

1.08151

1.0858


Key Resistance Levels:

1.0889

1.09355

1.09751

1.10 - GEX


Auction Profile:

Range bound


/6E futures are currently trading above the previous value area but were strongly rejected around 1.09355. Expect this theme to continue as we expect the contracts to remain between 1.08151 and 1.09355.

 

BRITISH POUND


Key Support Levels:

1.15 - GEX

1.1511


Key Resistance Levels:

1.1761

1.1895

1.2027

1.2173

1.2306

1.31 - GEX


Auction Profile:

Range bound


/6B futures are trading above the previous value area in a slightly wide range. This is indicative of upward pressure with little buyer or seller conviction. Expect contracts to remain between 1.1511 and 1.1895, with elevated risk to the upside.

 

FINAL THOUGHTS


Volatility continues to be decrease throughout the market as OPEX occurred over the weekend, draining a large chunk of the negative gamma out of the markets. However, with the coronavirus, global economic turmoil and decreased liquidity, continue to expect large swings in prices across most markets in the coming weeks.

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