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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.

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