Market Analysis - 06.11.2020
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
Key Resistance Levels:
37.88
38.83
40 - GEX
41.05
Auction Profile:
Range bound
/CL futures are trading far below the previous value area after price was rejected strongly around 37.88. Contracts have fallen to the next high volume node which currently exists between 36.35 and 37. Consolidation is the most likely near term scenario until aggressive buyers or sellers enter the market.
S&P 500
Key Support Levels:
3090.50
3100 - GEX
Key Resistance Levels: 3129.50
3152
3190
3200 - GEX
3214.75
Auction Profile:
Range bound
/ES futures are trading far below the previous value area after a drastic fall in price during the overnight session. Fears of a second wave of the coronavirus may be the driving force behind this sharp move lower. Support has been located at the high put gamma strike and price action will likely consolidate on the high volume node between there and 3129.50 in the near term.
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 as price finds balance overnight. The best opportunities exist when price action breaks from this range on higher volume.
NASDAQ
Key Support Levels:
9477.50
9600
9660
9763
9900 - GEX
Key Resistance Levels:
9950 - GEX
10016
10078.50
10155.50
Auction Profile:
Range bound
/NQ futures are trading far below the previous value area after a large selloff during the overnight session. Price has found support around the high put gamma strike. A narrow range between the high call gamma and high put gamma strikes indicates a lower volatility expectation for today.
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 within the previous value area after price was rejected around 1.40 overnight. 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
Key Resistance Levels:
1.2732
1.27 - GEX
1.2885
1.3082
Auction Profile:
Up auction
/6B futures are trading far below the previous value area after price fell substantially overnight. Support will likely hold around 1.264 as price action consolidates in the high volume node between there and 1.27.
FINAL THOUGHTS
/VX futures have risen back into the 30s as volatility increases. Gamma exposure increased once again yesterday showing extreme positive gamma, which will likely cause stickiness in /ES price action. DIX fell modestly yesterday as dark pool buying remains high. We may be witnessing an end to the euphoria in the next few days as renewed concerns regarding COVID-19 continue to emerge and impact the future earning potential of the global economy. We continue to recommend keeping smaller contract size and using tighter stops.