Market Analysis - 05.25.2020
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:
28.24
29.18
30 - GEX
30.05
32.73
Key Resistance Levels:
33.78
34.89
35 - GEX
36.35
41.05
Auction Profile:
Range bound
/CL futures are trading above the previous value area as contracts once again rise to resistance around 33.78. There remains strong resistance around 34.88 and considering today is a national holiday, expect volume to be light and price to remain range bound.
S&P 500
Key Support Levels:
2846.75
2883.50
2940 - GEX
2945.75
2976
Key Resistance Levels:
3000 - GEX
3037
Auction Profile:
Range bound
/ES futures are trading above the previous value area and above support after significant buying came in overnight. Next major resistance level is around 3037. Expect range bound price action as volume is low today.
NATURAL GAS
Key Support Levels:
1.564
1.613
1.697
1.70 - GEX
1.719
Key Resistance Levels:
1.75 - GEX
1.757
1.831
1.86
1.912
Auction Profile:
Range bound
/NG futures are trading within the previous value area after little movement overnight. Expect price to remain range bound on less volume today.
NASDAQ
Key Support Levels:
9300 - GEX
9335.50
9405.50
9477.50
9513.50
Key Resistance Levels:
9520 - GEX
9660
Auction Profile:
Range bound
/NQ futures are trading above the previous value area after buyers have come in overnight. As with most futures, expect volume to be significantly lower today with range bound price action.
EURO
Key Support Levels:
1.08081
1.08319
1.085 - GEX
1.08726
Key Resistance Levels:
1.09113
1.09425
1.10041
1.10285
1.10482
1.105 - GEX
Auction Profile:
Range bound
/6E futures are trading within the previous value area after support was found around 1.08726 overnight. Strong resistance remains around 1.093. Downside risk remains elevated today.
BRITISH POUND
Key Support Levels:
1.2132
1.215 - GEX
1.2222
Key Resistance Levels:
1.2293
1.2361
1.24 - GEX
1.2472
1.2544
Auction Profile:
Range bound
/6B futures are trading in a narrow range within the previous value area. Strong support remains beneath current price around 1.214. Wait for a breakout in either direction, with upside risk elevated.
FINAL THOUGHTS
/VX futures have dropped moderately into the upper 20s as volatility remains elevated. Gamma dropped slightly which indicates an increase in the volatility of /ES price action. DIX rose sharply again as dark pool buyers continue to increase their bullish positions. If you are going to trade today, wait for volume to come into the market. We continue to recommend keeping smaller contract size and using tighter stops.