Market Analysis - 05.15.2020
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:
24.90
25 - GEX
25.49
26.75
28.24
Key Resistance Levels:
29 - GEX
29.18
Auction Profile:
Up auction
/CL futures are trading far above the previous value area after a surge higher yesterday afternoon. Upside risk is elevated today.
S&P 500
Key Support Levels:
2750.25
2800 - GEX
2810.50
2846.75
Key Resistance Levels:
2883.50
2850 - GEX
2945.75
Auction Profile:
Range bound
/ES futures are trading within the previous value area after being rejected around 2860 in the overnight session. Support has come in around 2810.50 with after the strong influx of sellers. Downside risk remains elevated.
NATURAL GAS
Key Support Levels:
1.532
1.564
1.60 - GEX
1.613
1.697
Key Resistance Levels:
1.719
1.757
1.831
1.86
2 - GEX
Auction Profile:
Range bound
/NG futures are trading in a narrow range to the upper portion of the previous value area after rising yesterday afternoon. Price has found support around 1.697. Watch for a big move following a breakout to either side, once buyers or sellers enter the market strongly.
NASDAQ
Key Support Levels:
8621.50
8841.50
8880 - GEX
Key Resistance Levels:
8963
9000 - GEX
9155.75
9240
Auction Profile:
Down auction
/NQ futures are trading within the previous value area following a significant drop in price during the overnight session. Forceful rejection came in around 9155.75 and the high volume node surrounding 8963 might slow down the contracts' descent. The likely scenario is for prices to remain between 8841.50 and 9155.75, barring any significant news event.
EURO
Key Support Levels:
1.07659
1.08 - GEX
1.08081
1.08319
Key Resistance Levels:
1.08726
1.09 - GEX
1.09113
Auction Profile:
Range bound
/6E futures are trading above the previous value area following a surge upward in the overnight session. That large high volume node above the contracts will likely continue to pull price upward today.
BRITISH POUND
Key Support Levels:
1.2132
1.2222
1.2293
1.205 - GEX
Key Resistance Levels:
1.2361
1.2472
1.2544
1.245 - GEX
1.264
Auction Profile:
Down auction
/6B futures are trading below the previous value area after resistance remained firm overnight around 1.2222. There is some support coming in around 1.216, but downside risk remains elevated.
FINAL THOUGHTS
/VX futures remain in the mid 30s as volatility is high following the down days earlier this week for /ES. Gamma rose moderately yesterday, and remains positive as it continues to put the brakes on volatility in /ES price action. DIX is at its highest since the beginning of the month, as institutional buying remained high. We continue to recommend keeping smaller contract size and using tighter stops.