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Market Analysis - 06.19.2020

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:

37.88

38.45

38.83

39.50 - GEX

40


Key Resistance Levels:

40.44

41 - GEX

43.32


Auction Profile:

Up auction


/CL futures are trading above the previous value area after price was rejected around 40.44 overnight. Upside risk is elevated, yet strong resistance exists around 41.

 

S&P 500


Key Support Levels:

3051.25

3075

3090.50

3120 - GEX

3129.50


Key Resistance Levels:

3150 - GEX

3190

3214.75


Auction Profile:

Range bound


/ES futures are trading above the previous value area after support came in around 3100 overnight. Upside risk is high today, however, strong resistance at the high call gamma strike will not be easily overcome.

 

NATURAL GAS


Key Support Levels:

1.50 - GEX

1.60

1.636


Key Resistance Levels:

1.674

1.725

1.75 - GEX

1.80


Auction Profile:

Down auction


/NG futures are trading within the previous value area in a narrow range after being rejected around 1.665 recently. Consolidation will continue until aggressive participants enter the market and push price above 1.674 or below 1.60 strongly.

 

NASDAQ


Key Support Levels:

9660

9763

9800

9900

10000 - GEX

10078.50


Key Resistance Levels:

10155.50

10200 - GEX


Auction Profile:

Up auction


/NQ futures are trading above the previous value area as price is currently rising above previous resistance at 10078.50. Upside risk is elevated, yet resistance comes in strongly around 10155.50.

 

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 upper portion of the previous value area after price spiked up around 1.27. Range bound activity is likely to continue until aggressive market participants engage in numbers.

 

BRITISH POUND


Key Support Levels:

1.225 - GEX

1.2364

1.2407


Key Resistance Levels: 1.2472

1.2527

1.264

1.27 - GEX

1.2732


Auction Profile:

Down auction


/6B futures are trading just within the previous value area having just been supported around 1.2364. Downside risk remains elevated today.

 

FINAL THOUGHTS


/VX futures have fallen into the lower 30s as volatility remains elevated. Gamma exposure dropped yesterday, yet is still highly positive. DIX rose sharply to extremes 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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