Market Analysis - 04.06.2020
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:
22.39
23.25
25.10
26.05
27 - GEX
Key Resistance Levels:
27.45
28.28
29.43
30 - GEX
Auction Profile:
Range bound
/CL futures gapped lower during the Sunday night session, but have recovered most of the losses as of now. This illustrates the presence of both aggressive buyers and sellers. Expect a range bound day with prices varying greatly. Most recent reference points indicate swings between 26.05 and 29.43.
S&P 500
Key Support Levels:
2445
2489
2500 - GEX
2523.25
2554
Key Resistance Levels:
2591.75
2600 - GEX
2619
2658.75
2694.25
Auction Profile:
Range bound
/ES futures had a strong upward move overnight and is currently trading a narrow range at the top of that move. There is the possibility of more buying strength from here, but there is strong resistance above 2625. Expect contracts to trade between 2445 and 2625, barring any news catalysts.
NATURAL GAS
Key Support Levels:
1.50 - GEX
1.526
1.565
1.611
1.655
Key Resistance Levels:
1.678
1.7
1.717
1.74
1.75 - GEX
Auction Profile:
Range bound
/NG futures closed Friday much higher, a sign of increasing buyer interest. However, the strong rejection at 1.70 indicates strong seller conviction in that area. Contracts will most likely remain between 1.611 and 1.717 today.
NASDAQ
Key Support Levels:
7169.25
7415.50
7500 - GEX
7623
7758
Key Resistance Levels:
7869
8000 - GEX
8078.25
8168.25
8262
Auction Profile:
Range bound
/NQ futures are up sharply overnight and currently trading in a narrow range. A low volume area above 7869 forecasts strong resistance in that area. Expect contracts to trade between 7500 and 7900 today.
EURO
Key Support Levels:
1.06 - GEX
1.07119
1.07962
1.08151
Key Resistance Levels:
1.0858
1.0889
1.09355
1.09751
1.10
1.12 - GEX
Auction Profile:
Range bound
/6E futures are trading in a narrow range within the previous value area. Conviction is low from both buyers and sellers. Contracts likely to remain between 1.07962 and 1.0889 today, with elevated upside risk.
BRITISH POUND
Key Support Levels:
1.1895
1.2027
1.2173
1.2239
1.225 - GEX
Key Resistance Levels:
1.2306
1.2389
1.2446
1.245 - GEX
1.2551
Auction Profile:
Range bound
/6B futures are trading within the previous value area showing little buyer or seller conviction. Expect contracts to range between 1.2239 and 1.2446.
FINAL THOUGHTS
/VX futures continue lower as volatility has declined, yet still remains elevated. Gamma remains negative exacerbating movement in price action. DIX remains elevated, continuing to forecast a near term bottom in /ES. While elevated volatility remains, continue to use lower leverage and a stop loss.