Market Analysis - 06.05.2020
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
37.07
37.88
Key Resistance Levels:
40 - GEX
Auction Profile:
Up auction
/CL futures are trading above the previous value area as buyers have entered the market aggressively. One factor affecting price action is the discussion of OPEC+ production cut extensions. Upside risk is elevated today.
S&P 500
Key Support Levels:
3013.50
3037
3051.25
3075 - GEX
3090.50
Key Resistance Levels:
3152
3175 - GEX
3180.75
Auction Profile:
Up auction
/ES futures are trading above the previous value area nearing resistance around 3152. Upside risk is elevated, barring any significant news catalyst.
NATURAL GAS
Key Support Levels:
1.75 - GEX
1.819
1.84
Key Resistance Levels:
1.896
1.951
2 - GEX
Auction Profile:
Range bound
/NG futures are trading above the previous value area as price has broken through 1.84. Resistance came in around 1.858 a few days ago, so wait for contracts to move past this level before expecting continuation.
NASDAQ
Key Support Levels:
9335.50
9416.25
9477.50
9500 - GEX
9600
Key Resistance Levels:
9660
9700 - GEX
9763
Auction Profile:
Range bound
/NQ futures are trading within the lower section of the previous value area after being rejected around the high call gamma strike. As price remains consolidating within this high volume node, we continue to watch for a breakout in either direction accompanied by strong volume before initiating a trade.
EURO
Key Support Levels:
1.10959
1.11 - GEX
1.11419
1.11657
1.12297
Key Resistance Levels:
1.13707
1.145 - GEX
Auction Profile:
Up auction
/6E futures are trading above the previous value area after contracts were rejected forcefully around 1.13707 in the past few hours. Downward risk is elevated today.
BRITISH POUND
Key Support Levels:
1.245 - GEX
1.2472
1.2516
1.2544
Key Resistance Levels:
1.264
1.27 - GEX
Auction Profile:
Range bound
/6B futures are trading above the previous value area after strong support came in around 1.262. Upside risk remains high, but expect stickiness on the climb upward.
FINAL THOUGHTS
/VX futures have fallen further into the mid 20s yet volatility remains high. Gamma exposure fell slightly yesterday showing continued positive gamma. DIX rose sharply yesterday as buyers entered the market strongly. We continue to recommend keeping smaller contract size and using tighter stops.