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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.

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