Market Analysis - 04.23.2020

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:

6.73

11.79

14 - GEX

15.37


Key Resistance Levels:

19.35

20 - GEX

21.01


Auction Profile:

Range bound


/CL futures are trading above previous value but are coming into an extremely low volume area between 17 and 19.35. Low volume areas tend to act as resistance or support. Because of the large width of this zone, expect it to remain as resistance as long we don't experience a surge upward like we did in the opposite direction on Tuesday.

 

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 in a narrow range within the previous value area. This indicates a lack of conviction from both buyers and sellers. Strong resistance remains around 2810.50 and below around 2699.75.

 

NATURAL GAS


Key Support Levels:

1.75 - GEX

1.757

1.81

1.831

1.86


Key Resistance Levels:

1.912

1.971

2.00 - GEX


Auction Profile:

Range bound


/NG futures are trading in a narrow range at the top of the previous value area. Strong resistance remains around 1.971 and downside risk is elevated.

 

NASDAQ


Key Support Levels:

8374.50

8500 - GEX

8621.50


Key Resistance Levels:

8841.50

8850 - GEX

8963


Auction Profile:

Range bound


/NQ futures are trading in a narrow range at the top of yesterday's value area. The contracts have overcome resistance at 8621.50 which has now become support. Upside risk is elevated today.

 

EURO


Key Support Levels:

1.06 - GEX

1.08081

1.08319

1.08726


Key Resistance Levels:

1.09113

1.09425

1.10041

1.10482

1.105 - GEX


Auction Profile:

Down auction


/6E futures are trading far below the previous value area showing increasing seller pressure. However, there was strong support at 1.07659, which could continue. Downside risk remains elevated.

 

BRITISH POUND


Key Support Levels:

1.2132

1.22 - GEX

1.2222

1.2293


Key Resistance Levels:

1.2361

1.2472

1.2544

1.264

1.27 - GEX


Auction Profile:

Down auction


/6B futures are trading to the upper portion of the previous value area indicating slight buying pressure. Upside risk is elevated today.

 

FINAL THOUGHTS


/VX futures are in the high 30s illustrating that volatility has subsided slightly. Gamma has risen yesterday and is continuing to indicate less volatility in /ES price action. DIX fell slightly yesterday, showing institutions slowly increasing their buying. We continue to recommend keeping smaller contract size and using tighter stops.

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