Market Analysis - 06.08.2020
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:
35.85
36.35
37 - GEX
37.88
38.83
Key Resistance Levels:
40 - GEX
41.05
Auction Profile:
Up auction
/CL futures are trading within the previous value area after price was rejected strongly around the high call gamma strike. Upside risk remains elevated.
S&P 500
Key Support Levels:
3075
3090.50
3129.50
3152
3180 - GEX
Key Resistance Levels:
3214.75
3230 - GEX
Auction Profile:
Up auction
/ES futures are trading just above the previous value area nearing resistance around 3214.75. Upside risk is elevated, barring any significant news catalyst.
NATURAL GAS
Key Support Levels:
1.75 - GEX
Key Resistance Levels:
1.819
1.84
1.86
1.896
1.95 - GEX
Auction Profile:
Range bound
/NG futures are trading far below the previous value area after price has moved lower overnight. Support remains at 1.75 with downside risk elevated today.
NASDAQ
Key Support Levels:
9477.50
9600
9660
9763
9790 - GEX
Key Resistance Levels:
9900 - GEX
Auction Profile:
Up auction
/NQ futures are trading above the previous value area after being rejected around 9875.50. Upside risk remains elevated.
EURO
Key Support Levels:
1.10959
1.11419
1.11657
1.12297
1.127
1.13 - GEX
Key Resistance Levels:
1.135 - GEX
1.13707
Auction Profile:
Range bound
/6E futures are trading within the previous value area after price was supported around 1.127 in the past hour. Range bound price action is most likely today, with a break outside of the current high volume node being a possible entry point.
BRITISH POUND
Key Support Levels:
1.2516
1.2544
1.255 - GEX
1.264
Key Resistance Levels:
1.275 - GEX
Auction Profile:
Range bound
/6B futures are trading within the previous value area after strong support came in around 1.264. Range bound trading is the likely result for today, unless a break outside the current range occurs.
FINAL THOUGHTS
/VX futures continue to fall as the market rally marches on. Gamma exposure increased slightly Friday showing continued positive gamma. DIX fell moderately on Friday as dark pool buying remains high. Watch for euphoria in the market as this rally continues. Once positioning reaches the "all-in" level, we could see a reversal lower or at the very least a breather. We continue to recommend keeping smaller contract size and using tighter stops.