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Market Analysis - 06.10.2020

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

37.07

37.88

38 - GEX


Key Resistance Levels:

38.83

40 - GEX

41.05


Auction Profile:

Range bound


/CL futures are trading within the previous value area after price has been supported around the high put gamma strike. Contracts are in the middle of a high volume node currently, and could trade in a range bound manner for the near future. Good entries are near the edges of the volume node, once confirmation price discovery has been rejected. With aggressive price action breaking outside of this node, look for trades in the direction of the breakout.

 

S&P 500


Key Support Levels:

3090.50

3129.50

3152

3190

3205 - GEX


Key Resistance Levels:

3214.75

3250 - GEX

3263.50

3308


Auction Profile:

Range bound


/ES futures are trading within the previous value area and are currently in range bound price action similar to crude oil. Expect continued volatility today as the FOMC's press release occurs at 2 PM ET and Powell's press conference follows. Set your alarms for 1:55 PM ET, as a risk averse person would avoid the few minutes before and after the Fed's minutes are released.

 

NATURAL GAS


Key Support Levels:

1.725

1.75 - GEX


Key Resistance Levels:

1.819

1.84

1.86

1.896

1.94

2 - GEX


Auction Profile:

Range bound


/NG futures are trading within the previous value area after price was supported around 1.725 overnight. Aggressive buyers have entered the market, yet strong resistance remains around 1.819.

 

NASDAQ


Key Support Levels:

9477.50

9600

9660

9763

9900 - GEX


Key Resistance Levels:

10120 - GEX


Auction Profile:

Up auction


/NQ futures are trading above the previous value area after breaking 10000 in the past few hours. As with S&P futures, there is great event risk surround the FOMC meeting at 2 PM ET. Expect volatility to soar around that time of day.

 

EURO


Key Support Levels:

1.12297

1.127

1.13 - GEX

1.1317


Key Resistance Levels:

1.13707

1.145 - GEX


Auction Profile:

Range bound


/6E futures are trading above the previous value area after price was rejected around 1.39. Range bound activity is likely to continue today, barring any significant news.

 

BRITISH POUND


Key Support Levels:

1.2516

1.2544

1.255 - GEX

1.264

1.2732


Key Resistance Levels:

1.28 - GEX

1.2885

1.3082


Auction Profile:

Up auction


/6B futures are trading above the previous value area after price broke out of the range from yesterday. Upside risk is elevated, while volatility due to news catalysts could be expected later today.

 

FINAL THOUGHTS


/VX futures have risen higher as volatility hasn't left completely. Gamma exposure increased greatly yesterday showing extreme positive gamma, which will likely cause stickiness in /ES price action. DIX rose moderately again 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. The FOMC press release and Powell's testimony will most likely move ALL markets. You have been warned. We continue to recommend keeping smaller contract size and using tighter stops.

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