Market Analysis - 06.12.2020

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 - GEX

36.35


Key Resistance Levels:

37 - GEX

37.88

38.83

41.05


Auction Profile:

Down auction


/CL futures are trading within the previous value area after price was supported around 34.50 overnight. Contracts are back to the 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:

3000

3013.50

3030 - GEX

3037

3051.25


Key Resistance Levels: 3090.50

3100 - GEX

3129.50

3152

3190


Auction Profile:

Down auction


/ES futures are trading dramatically lower than the previous value area after a sharp decrease in price yesterday. Support has been found around 3000. Fears of a second wave of the coronavirus continue to weigh on the minds of traders. Consolidation is likely in the near term until motivated buyers or sellers enter the market forcefully.

 

NATURAL GAS


Key Support Levels:

1.674

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 again 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. Price action will need to leave the POC and high volume node for any sizable move to occur.

 

NASDAQ


Key Support Levels:

9477.50

9600

9660

9700 - GEX


Key Resistance Levels:

9763

9800 - GEX

9900

10016

10078.50

10155.50


Auction Profile:

Down auction


/NQ futures are trading far below the previous value area after support was found around 9600 during the overnight session. Downward pressure remains high today.

 

EURO


Key Support Levels:

1.12297

1.127

1.13 - GEX

1.1317


Key Resistance Levels:

1.135 - GEX

1.13707

1.14165


Auction Profile:

Range bound


/6E futures are trading below the previous value area after price was supported around the high put gamma strike 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:

Down auction


/6B futures are trading just below the previous value area after price fell substantially yesterday. Support held around the high put gamma strike overnight. Downside risk is elevated today.


 

FINAL THOUGHTS


/VX futures remain in the 30s as volatility is still elevated. Gamma exposure decreased substantially yesterday now displaying slightly positive gamma, which will likely cause volatility in /ES price action. DIX rose moderately yesterday as dark pool buying remains high. It remains to be seen if this is a simple breather on the way to higher highs or if we are in the middle of an extended downturn. Expect continued increased volatility in most, if not all, futures instruments. We continue to recommend keeping smaller contract size and using tighter stops.


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