Market Analysis - 06.16.2020
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:
36.35
37.07
37.88
38 - GEX
38.45
Key Resistance Levels:
38.83
40 - GEX
41.05
Auction Profile:
Range bound
/CL futures are trading far above the previous value area after price rose sharply overnight. Upside risk is elevate today.
S&P 500
Key Support Levels:
3037
3051.25
3060 - GEX
3075
3090.50
3129.50
Key Resistance Levels:
3140 - GEX
3152
3190
3214.75
Auction Profile:
Up auction
/ES futures are trading far above the previous value area after strong support around 3090 overnight. The Fed announcement that it would buy corporate bonds had a strong effect on the confidence of traders. Expect this impact to continue to push prices higher today.
NATURAL GAS
Key Support Levels:
1.50 - GEX
1.636
Key Resistance Levels:
1.674
1.725
1.75
1.819
1.84
1.85 - GEX
Auction Profile:
Down auction
/NG futures are trading below the previous value area as price was supported around 1.636 overnight, yet continues to move lower. Downside risk remains elevated today.
NASDAQ
Key Support Levels:
9600
9660
9763
9850 - GEX
9900
Key Resistance Levels:
10016
10078.50
10100 - GEX
10155.50
Auction Profile:
Up auction
/NQ futures are trading far above the previous value area after support was found around the high put gamma strike during the overnight session. As with /ES, the confidence provided to the markets by the Fed should keep price action rising throughout today.
EURO
Key Support Levels:
1.12
1.12297
1.127
1.13 - GEX
1.1327
Key Resistance Levels:
1.135 - GEX
1.13707
1.14165
Auction Profile:
Range bound
/6E futures are trading within the previous value area after price was rejected around 1.13707 overnight. Once again, range bound activity is likely to continue to keep price between 1.127 and 1.3707 until significant buyers or sellers enter the market.
BRITISH POUND
Key Support Levels:
1.2364
1.2407
1.2472
1.2527
1.255 - GEX
1.264
Key Resistance Levels:
1.27 - GEX
1.2732
1.2885
1.3082
Auction Profile:
Range bound
/6B futures are trading far above the previous value area after price was strongly supported around 1.264 overnight. Price action like to remain range bound until it can breakthrough strongly above the high call gamma strike or below 1.2613.
FINAL THOUGHTS
/VX futures slipped lower back into the low 30s as volatility remains elevated. Gamma exposure dropped slightly yesterday, signifying continued positive gamma. DIX also fell modestly 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.