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Market Analysis - 05.18.2020

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:

26.75

27 - GEX

28.24

29.18


Key Resistance Levels:

32.50 - GEX

33.78


Auction Profile:

Up auction


/CL futures are trading far above the previous value area again today after buyers continue to dominate the market. Upside risk is elevated today, with significant longer term resistance coming in around 33.78.

 

S&P 500


Key Support Levels:

2750.25

2810.50

2846.75

2855 - GEX

2883.50


Key Resistance Levels:

2945.75

2950 - GEX


Auction Profile:

Range bound


/ES futures are trading far above the previous value area after a strong move upward in the last few hours of trading. Resistance remains around 2945.75 as upside risk is elevated today.

 

NATURAL GAS


Key Support Levels:

1.564

1.613

1.697

1.70 - GEX

1.719


Key Resistance Levels:

1.757

1.831

1.86

1.912

2 - GEX


Auction Profile:

Up auction


/NG futures are trading above the previous value area after gapping up during the overnight session. Price has found some resistance around 1.757, yet upside risk is elevated.

 

NASDAQ


Key Support Levels:

8963

9100 - GEX

9155.75

9240


Key Resistance Levels:

9380 - GEX


Auction Profile:

Range bound


/NQ futures are trading far above the previous value area following buyers entering the market strongly during the overnight session. Heavy resistance remains around 9350, so expect buyers to meet aggressive sellers around that area. Upside risk is elevated.

 

EURO


Key Support Levels:

1.07 - GEX

1.07659

1.08081

1.08319


Key Resistance Levels:

1.08726

1.09 - GEX

1.09113


Auction Profile:

Range bound


/6E futures are trading slightly above the previous value area following a choppy overnight session. That large high volume node above the contracts remains the likely direction of these contracts.

 

BRITISH POUND


Key Support Levels:

1.2132

1.2222

1.2293

1.215 - GEX


Key Resistance Levels:

1.2361

1.2472

1.2544

1.245 - GEX

1.264


Auction Profile:

Down auction


/6B futures are trading within the previous value area after support came in overnight around 1.208. The last few hours of trading have shown buyers entering the market. Upside risk is elevated.

 

FINAL THOUGHTS


/VX futures have dropped back into the high 20s as volatility is lower partially due to the comments by Powell and his guarantee of more stimulus. Gamma fell significantly on Friday due to OPEX, yet it remains positive. DIX rose even more on Friday, as institutional buying remained high. We continue to recommend keeping smaller contract size and using tighter stops.

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