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Market Analysis - 05.14.2020

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 - GEX

26.75


Auction Profile:

Range bound


/CL futures are trading slightly above the previous value area, with rejection coming overnight around 26.75. We remain inside the range from last Thursday and will most likely stay in this range today.

 

S&P 500


Key Support Levels:

2750 - GEX

2750.25

2784.75


Key Resistance Levels: 2810.50

2832.25

2846.75

2850 - GEX

2883.50


Auction Profile:

Down auction


/ES futures are trading far below the previous value area again after massive selling continued yesterday afternoon. Contracts hit a new support level at 2784.75 yesterday with a bounce, yet continue to head in that direction today. Expect this volatility to continue as congress discusses a new stimulus package. Downside risk remains elevated.

 

NATURAL GAS


Key Support Levels:

1.50 - GEX

1.532

1.564

1.613


Key Resistance Levels:

1.697

1.719

1.757

1.831

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:

8800 - GEX

8841.50


Key Resistance Levels:

8963

9000 - GEX

9155.75

9240


Auction Profile:

Down auction


/NQ futures are trading below the previous value area following another round of selling yesterday afternoon. Contracts found support around 8900, which continues to be a strong support area. Downside risk remains elevated today.

 

EURO


Key Support Levels:

1.07 - GEX

1.07659


Key Resistance Levels:

1.08081

1.08319

1.08726

1.09 - GEX


Auction Profile:

Range bound


/6E futures are trading below the previous value area after strong rejection yesterday around 1.089. Price is currently near support and it will take large number of sellers to keep contracts falling below the 1.078 level.

 

BRITISH POUND


Key Support Levels:

1.2132

1.215 - GEX


Key Resistance Levels:

1.2222

1.2293

1.2361

1.2472

1.255 - GEX


Auction Profile:

Down auction


/6B futures are trading below the previous value area after strong resistance around 1.236 yesterday afternoon. Contracts continue to encounter resistance around 1.2222 with downside risk being elevated today.

 

FINAL THOUGHTS


/VX futures have increased again, moving into the upper 30s as volatility is increasing following the selloff in /ES over the past two days. Gamma dropped significantly yesterday, but remains slightly positive as it continues to apply pressure on volatility in /ES price action. DIX rose moderately as institutional buying remained high. We continue to recommend keeping smaller contract size and using tighter stops.

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