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Market Analysis - 04.21.2020

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:

14 - GEX

15.37


Key Resistance Levels:

19.35

21.01

21.56

21.94

23.02

24 - GEX



Auction Profile:

Down auction


/CL futures have plunged today. Expect high volatility for the near future as the markets digest negative prices from the May contract.

 

S&P 500


Key Support Levels:

2699.75

2750 - GEX

2750.25


Key Resistance Levels:

2800 - GEX

2810.50

2846.75

2883.50


Auction Profile:

Range bound


/ES futures are trading below the previous value area around strong support at 2750.25. Downside risk is elevated.

 

NATURAL GAS


Key Support Levels:

1.75 - GEX

1.564

1.613

1.697


Key Resistance Levels:

1.719

2.00 - GEX

1.757

1.81

1.831

1.86


Auction Profile:

Up auction


/NG futures are trading far above the previous value area indicating strong buying pressure. Strong rejection occurred at 1.971 and that price could remain as a resistance level for the near term. Upside risk is elevated.

 

NASDAQ


Key Support Levels:

8374.50

8450 - GEX

8621.50


Key Resistance Levels:

8800 - GEX

8841.50

8963


Auction Profile:

Range bound


/NQ futures are trading below the previous value area indicating stronger seller pressure. Strong support exists around 8374.50, as downside risk is elevated today.

 

EURO


Key Support Levels:

1.08 - GEX

1.08081

1.08319


Key Resistance Levels:

1.08726

1.09113

1.09425

1.10041

1.10482

1.11 - GEX


Auction Profile:

Range bound


/6E futures are trading below the previous value area today, which shows downside risk is elevated. Strong support is located around 1.08081.

 

BRITISH POUND


Key Support Levels:

1.2132

1.22 - GEX

1.222


Key Resistance Levels:

1.2293

1.2361

1.2472

1.2544

1.264

1.27 - GEX


Auction Profile:

Range bound


/6B futures are trading far below the previous value area indicating sellers are more in control. Downside risk is elevated and strong support remain around 1.2222.

 

FINAL THOUGHTS


/VX futures are back above 40 indicating volatility is elevated today. Gamma is still slightly positive indicating less volatility in /ES price action. DIX dropped significantly again yesterday, showing institutions slowed their buying. We continue to recommend keeping smaller contract size and using tighter stops. The economic recovery following this pandemic will likely be slow, and there may be a second wave of infections. Keep your expectations realistic.

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