Market Analysis - 06.01.2020
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:
32.27
32 - GEX
33.16
33.78
34.88
Key Resistance Levels:
36 - GEX
36.35
Auction Profile:
Up auction
/CL futures are trading above the previous value area in a tight range as contracts consolidate between 34.88 and 36. Watch for a breakout to either side when aggressive participants enter the market.
S&P 500
Key Support Levels:
2945.75
2976
3013.50
3010 - GEX
3037
Key Resistance Levels:
3050 - GEX
3055
Auction Profile:
Range bound
/ES futures are trading above the previous value area yet remain within Thursday's value area. The most likely outcome for the day is for price to stay between the high call and high put gamma strikes.
NATURAL GAS
Key Support Levels:
1.75 - GEX
Key Resistance Levels:
1.819
1.84
1.896
1.951
2 - GEX
Auction Profile:
Down auction
/NG futures are trading in the lower portion of the previous value area. Downward pressure continues to mount as price moves lower. The high put gamma strike may hold as support, but downside risk remains elevated.
NASDAQ
Key Support Levels:
9240
9335.50
9400 - GEX
9416.25
9477.50
9513.50
Key Resistance Levels:
9600 - GEX
9660
Auction Profile:
Range bound
/NQ futures are trading above the previous value area after price was rejected around 9600 overnight. Expect range bound action to continue until aggressive buyers or sellers enter the market, or there is a significant news catalyst.
EURO
Key Support Levels:
1.10 - GEX
1.10285
1.10699
1.10959
Key Resistance Levels:
1.115 - GEX
1.11954
Auction Profile:
Range bound
/6E futures are trading within the previous value area after price was rejected around the high call gamma strike again during the overnight session. Expect range bound activity to continue until market participants enter strongly in a single direction, or a new event emerges.
BRITISH POUND
Key Support Levels:
1.2165
1.2222
1.2247
1.23 - GEX
1.2364
Key Resistance Levels:
1.24 - GEX
1.2472
1.2516
Auction Profile:
Up auction
/6B futures are trading above the previous value area in a choppy range around the high call gamma strike. Upside risk remains elevated today, yet the 1.24 area will prove sticky to price action.
FINAL THOUGHTS
/VX futures remain elevated as rioting spreads across the US, US and China tensions are high and the pandemic continues to weigh on the global economy. Gamma exposure rose moderately Friday showing continued positive gamma. DIX rose to its highest level ever, indicating dark pool buying activity has remained heightened. We continue to recommend keeping smaller contract size and using tighter stops.