Market Analysis - 06.03.2020
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:
33.16
33.78
34.88
35 - GEX
36.35
Key Resistance Levels:
37 - GEX
37.88
Auction Profile:
Up auction
/CL futures are trading within the previous value area again today after getting rejected strongly around 38.18 overnight. As mentioned previously, we are now inside of the gap down from March and we are working to fill it to the upside. We have EIA inventories today and speculation regarding OPEC+ production cut extensions continue to weigh on the minds of traders. Upside risk remains today, but expect elevated volatility as well.
S&P 500
Key Support Levels:
3013.50
3037
3051.25
3075 - GEX
3090.50
Key Resistance Levels:
3120 - GEX
Auction Profile:
Up auction
/ES futures are trading above the previous value area in a narrow range that continues to oscillate around 3090.50. Upside risk remains elevated.
NATURAL GAS
Key Support Levels:
1.75 - GEX
Key Resistance Levels:
1.819
1.84
1.896
1.951
2 - GEX
Auction Profile:
Range bound
/NG futures are trading above the previous value area with rejection coming in around 1.819. This surge in the past few hours was the breakout we were anticipating. In order to continue, buyers need to step in aggressively as price nears 1.819.
NASDAQ
Key Support Levels:
9335.50
9416.25
9477.50
9500 - GEX
9600
9660
Key Resistance Levels:
9763
9800 - GEX
Auction Profile:
Up auction
/NQ futures are trading above the previous value area in a tight range just above 9660, which has now become support. Watch for a breakout in either direction accompanied by strong volume before initiating a trade.
EURO
Key Support Levels:
1.10285
1.10699
1.10959
1.1125 - GEX
1.11419
Key Resistance Levels:
1.125 - GEX
Auction Profile:
Up auction
/6E futures are trading just above the previous value area after price was rejected around 1.123 during the overnight session. Upward risk remains elevated today.
BRITISH POUND
Key Support Levels:
1.2165
1.2222
1.2247
1.255 - GEX
1.2364
Key Resistance Levels:
1.2472
1.2516
1.265 - GEX
1.264
Auction Profile:
Up auction
/6B futures are trading slightly above the previous value area in a choppy range around just above the high put gamma strike. Little conviction remains from buyers or sellers as price moves wildly back and forth. Downside risk is elevated today, with strong support just below current price.
FINAL THOUGHTS
/VX futures have fallen into the upper 20s again as volatility remains high. Gamma exposure rose modestly again yesterday showing continued positive gamma. DIX moved slightly upward as dark pool buying activity remains positive. We continue to recommend keeping smaller contract size and using tighter stops.