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Market Analysis - 05.19.2020

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

30.05


Key Resistance Levels:

33.78

35 - GEX


Auction Profile:

Up auction


/CL futures are trading in a narrow range far above the previous value area again today after buyers pushed price upwards yesterday. Market participants have finally settled around a fair price of about 32, as contracts consolidate. The likelihood that price will breakout in either direction is high today. Wait for the influx of buyers or sellers and ride the wave to the next support/resistance level.

 

S&P 500


Key Support Levels:

2750.25

2810.50

2846.75

2883.50

2920 - GEX


Key Resistance Levels:

2945.75

2950 - GEX


Auction Profile:

Range bound


/ES futures are trading within the previous value area after some consolidation in the last few hours. There was a strong push upward overnight, that was rejected with equal and opposite force, indicating strong selling pressure above 2970. As with crude oil, we will await a strong push out of this consolidation from buyers or sellers and expect continuation in that direction.

 

NATURAL GAS


Key Support Levels:

1.564

1.613

1.697

1.719

1.75 - GEX

1.757


Key Resistance Levels:

1.831

1.86

1.912

2 - GEX


Auction Profile:

Up auction


/NG futures are trading within the previous value area after rising to a previously rejected level around 1.831. There is a large volume node around this area that will need a forceful move to get past. Be patient and wait for the influx of buyers or sellers to indicate future direction.

 

NASDAQ


Key Support Levels:

8963

9150 - GEX

9155.75

9240


Key Resistance Levels:

9335.50

9380 - GEX


Auction Profile:

Range bound


/NQ futures are trading within the previous value area with consolidation occurring overnight. There was a surge to around 9400 that was met with overwhelming selling action. As with crude oil and S&P futures, wait for a breakout and then continuation in one direction once buyers or sellers enter the market aggressively.

 

EURO


Key Support Levels:

1.0805 - GEX

1.08319

1.08726

1.09113

1.09425


Key Resistance Levels:

1.10041

1.105 - GEX


Auction Profile:

Up auction


/6E futures are trading far above the previous value area after a surge upward in price yesterday and somewhat overnight. Previous volume has dried up in the contracts' current area and rejection around 1.098 almost confirms this. Expect downward movement from here, barring any significant news event.

 

BRITISH POUND


Key Support Levels:

1.2132

1.215 - GEX

1.2222


Key Resistance Levels:

1.2293

1.2361

1.2472

1.2544

1.255 - GEX


Auction Profile:

Range bound


/6B futures are trading moderately above the previous value area after moving upward to around 1.2263 overnight. The last few hours of trading have shown consolidation as buyers and sellers agree on a fair price. Be patient and wait for a strong move in either direction.

 

FINAL THOUGHTS


/VX futures remain in the high 20s. Gamma rose slightly yesterday, and continues to be positive. DIX fell dramatically, as institutional buying was diminished yesterday. We continue to recommend keeping smaller contract size and using tighter stops.

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