Market Analysis - 06.09.2020
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
Key Resistance Levels:
38.50 - GEX
38.83
41.05
Auction Profile:
Range bound
/CL futures are trading below the previous value area after price was supported strongly around the high put gamma strike. Fundamentals, such as the crack spread between /RB and /CL, are showing deterioration recently. Downside risk is elevated.
S&P 500
Key Support Levels:
3075
3090.50
3129.50
3152
3190 - GEX
Key Resistance Levels:
3214.75
3275 - GEX
Auction Profile:
Up auction
/ES futures are trading within the previous value area after being rejected overnight around 3231. Sentiment is sky high as the Fed continues to push the markets higher. Expect volatility around the FOMC meeting tomorrow as press release occurs at 2 PM ET and Powell's press conference follows. Downside risk is elevated.
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 within the previous value area after price was rejected around 1.819 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:
9950 - GEX
Auction Profile:
Up auction
/NQ futures are trading just within the previous value area after being rejected around 9907 overnight. Upside risk remains elevated as market euphoria continues. The fun will end eventually, but traders are making hay while the Fed is shining.
EURO
Key Support Levels:
1.11 - GEX
1.11419
1.11657
1.12297
1.127
Key Resistance Levels:
1.1317
1.135 - GEX
1.13707
Auction Profile:
Range bound
/6E futures are trading just below the previous value area after price was supported around 1.1242 overnight. Downside risk is elevated today.
BRITISH POUND
Key Support Levels:
1.2516
1.2544
1.255 - GEX
1.264
Key Resistance Levels:
1.28 - GEX
Auction Profile:
Range bound
/6B futures are trading within the previous value area after strong support came in around 1.2613. Range bound activity continues with a significant break above 1.274 or below 1.2613 good entry points.
FINAL THOUGHTS
/VX futures continue to fall as the market rally marches on. Gamma exposure increased greatly yesterday showing elevated positive gamma. DIX rose slightly yesterday 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.