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.