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Market Analysis - 06.18.2020

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


Key Resistance Levels:

38.45

38.83

39 - GEX

40

41.05


Auction Profile:

Range bound


/CL futures are trading again within the previous value area after price was rejected around 38.83 overnight. Consolidation is likely today until aggressive buyers or sellers enter the market and push price outside of the range between 37.50 and 38.83.

 

S&P 500


Key Support Levels:

3000 - GEX

3013.50

3037

3051.25

3075


Key Resistance Levels: 3090.50

3129.50

3100 - GEX

3152

3190


Auction Profile:

Up auction


/ES futures are trading below the previous value area after strong resistance came in around 3120 overnight. Downside risk is elevated, but the strong support which exists around 3075 may prove powerful.

 

NATURAL GAS


Key Support Levels:

1.50 - GEX

1.60


Key Resistance Levels:

1.636

1.674

1.725

1.75

1.80 - GEX


Auction Profile:

Down auction


/NG futures are trading within the previous value area in a narrow range. Consolidation will continue until aggressive participants enter the market and push price above 1.65 or below 1.60 strongly.

 

NASDAQ


Key Support Levels:

9600

9660

9763

9800 - GEX

9900


Key Resistance Levels:

10020 - GEX

10078.50

10155.50


Auction Profile:

Up auction


/NQ futures are trading within the previous value area as price is currently consolidating between 9900 and the high call gamma strike. Expect price action to remain range bound until aggressive participants enter the market in volume.

 

EURO


Key Support Levels:

1.11 - GEX

1.12

1.12297


Key Resistance Levels: 1.127

1.13 - GEX

1.1327

1.13707

1.14165


Auction Profile:

Range bound


/6E futures are trading in the lower portion of the previous value area after price was supported around 1.1235 recently. Strong resistance exists at 1.2297, yet downside risk is elevated today.

 

BRITISH POUND


Key Support Levels:

1.2364

1.2407

1.245 - GEX


Key Resistance Levels: 1.2472

1.2527

1.264

1.27 - GEX

1.2732


Auction Profile:

Down auction


/6B futures are trading far below the previous value area having just been supported by the high put gamma strike. Support remains at the high put gamma strike, yet downside risk is elevated.

 

FINAL THOUGHTS


/VX futures continue to rise into the mid 30s as volatility remains elevated. Gamma exposure continues to rise, signifying high positive gamma. DIX rose moderately as dark pool buying remains high. We are getting near the area where elevated gamma could cause downward movement in price, but only if DIX drops dramatically from its current location. 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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