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.