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Market Analysis - 05.13.2020

Updated: May 14, 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:

23.41

24

24.90

25 - GEX

25.49


Key Resistance Levels:

26.75

30 - GEX


Auction Profile:

Range bound


/CL futures are trading in a narrow range within the previous value area, with market participants anxiously awaiting the EIA inventories report at 10:30 AM ET. A decrease in inventories is expected, and if true should push oil prices past 26.75, at least temporarily. Upside risk is elevated again today.

 

S&P 500


Key Support Levels:

2750.25

2810.50

2835 - GEX

2846.75


Key Resistance Levels:

2883.50

2895 - GEX

2945.75


Auction Profile:

Range bound


/ES futures are trading far below the previous value area after falling dramatically yesterday afternoon. Contracts have since rebounded around support at 2846.75. Expect this volatility to continue as congress discusses a new stimulus package. Downside risk is elevated.

 

NATURAL GAS


Key Support Levels:

1.532

1.564

1.613

1.697

1.70 - GEX


Key Resistance Levels:

1.719

1.757

1.831

1.86

2 - GEX


Auction Profile:

Down auction


/NG futures are trading back far below the previous value area after dropping significantly yesterday. Price has found support around 1.697. It looks as though buyers have begun to reenter the market at these lower prices, however, downside risk remains elevated.

 

NASDAQ


Key Support Levels:

8841.50

8963

9000 - GEX

9155.75


Key Resistance Levels:

9240

9250 - GEX


Auction Profile:

Range bound


/NQ futures are trading well below the previous value area following a significant drop in price yesterday afternoon. Contracts found support around 9000, which continues to be a strong support area. Buyers have come back into the market, yet downside risk remains elevated.

 

EURO


Key Support Levels:

1.07 - GEX

1.07659

1.08081

1.08319

1.08726


Key Resistance Levels:

1.09 - GEX

1.09113


Auction Profile:

Range bound


/6E futures are trading once again above the previous value area and in a strong uptrend in the overnight session. Price is currently near resistance and it will take an influx of buyers to keep contracts rising past the 1.089 level.

 

BRITISH POUND


Key Support Levels:

1.2132

1.2222

1.2293

1.23 - GEX


Key Resistance Levels:

1.2361

1.2472

1.2544

1.255 - GEX

1.264


Auction Profile:

Range bound


/6B futures are trading within the previous value area after strong support came in overnight around 1.226. Contracts are trading swiftly to the upside, indicating buyers have reentered the market. Upside risk is elevated today, with resistance coming in around 1.2361.

 

FINAL THOUGHTS


/VX futures have risen back into the 30s as volatility increased following the selloff in /ES yesterday. Gamma dropped slightly yesterday, but remains positive as it continues to put the brakes on volatility in /ES price action. DIX fell less than a point as institutional buying remained high. We continue to recommend keeping smaller contract size and using tighter stops.

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