Market Analysis - 06.02.2020

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 - GEX

32.27

33.16

33.78

34.88


Key Resistance Levels:

36.35

37 - GEX


Auction Profile:

Up auction


/CL futures are trading above the previous value area again today. We are nearing the gap from the beginning of March which should initially act as resistance to upward price movement. Upward risk remains elevated.

 

S&P 500


Key Support Levels:

2945.75

2976

3013.50

3037

3055 - GEX


Key Resistance Levels:

3070 - GEX


Auction Profile:

Range bound


/ES futures are trading above the previous value area near the high call gamma strike. Upward momentum is accelerating and expect it to continue today.

 

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 again trading in the lower portion of the previous value area. There is a lack of conviction currently between buyers and sellers as the put gamma strike continues to hold support. Watch for a breakout in either direction following this narrow range of price action.

 

NASDAQ


Key Support Levels:

9240

9335.50

9400 - GEX

9416.25

9477.50

9513.50


Key Resistance Levels:

9660

9700 - GEX


Auction Profile:

Range bound


/NQ futures are trading above the previous value area after price was rejected around 9660 overnight. Upward risk is elevated today.

 

EURO


Key Support Levels:

1.10285

1.10699

1.10959

1.11 - GEX

1.11419


Key Resistance Levels:

1.2 - GEX


Auction Profile:

Range bound


/6E futures are trading above the previous value area after price was rejected around 1.1191 during the overnight session. Upward risk is elevated today.

 

BRITISH POUND


Key Support Levels:

1.2165

1.2222

1.2247

1.23 - GEX

1.2364


Key Resistance Levels:

1.2472

1.2516

1.255 - GEX

1.264


Auction Profile:

Up auction


/6B futures are trading above the previous value area again today in a choppy range around the high call gamma strike. Upside risk remains elevated today.

 

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 again yesterday showing continued positive gamma. DIX fell sharply, indicating dark pool buying activity has diminished but is still positive. We continue to recommend keeping smaller contract size and using tighter stops.

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