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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.


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