📺 Watch the full video here:
Record supply disruption headlines out of Iran pushed oil futures sharply higher heading into Monday, March 9, with the spike beginning around 7:00 PM Eastern Sunday evening as the overnight futures session opened.
In this video, I walk through crude oil futures (CL) and E-mini S&P 500 futures (ES) to show how I approach charts after a gap forms.
🔍 Highlights
1️⃣ Crude Oil Futures (CL)
Oil futures spiked higher Sunday evening following headlines tied to potential supply disruption, with the move beginning around 7:00 PM Eastern when the overnight futures session opened.
On the 60-minute chart, prices surged and then began pulling back as part of the typical adjustment that often follows a news-driven gap. One of the first steps in analyzing this situation is identifying the pre-gap high and post-gap low. On this chart, the pre-gap high comes in around 91.53, defined by the final candle before the gap formed.
Zooming out helps provide perspective. Even though crude recently surged toward $120 per barrel, the monthly chart shows similar levels were reached during the 2008 rally, with the next major resistance appearing near the October 2008 high around $146.60.
2️⃣ E-mini S&P 500 Futures (ESH26)
The spike in oil initially pushed ES futures lower when the overnight session reopened around 7:00 PM Eastern, but the market began recovering as the session progressed.
Because the gap occurred during a downward move, the key reference levels become the pre-gap low and post-gap high, which together define the resistance area the market must reclaim.
On the 60-minute chart, RSI has begun returning toward the Bear Resistance Power Zone as ES works to close the gap. On the daily chart, the overnight low came extremely close to the November 21 support level, highlighting how larger timeframe support and resistance can still guide price action even during news-driven volatility.
Across both oil and ES futures, the key takeaway here isn’t just the move itself — it’s how markets behave after a gap forms.
When gaps like this occur, I’m paying attention to a few things right away:
- the pre-gap and post-gap levels
- how momentum behaves as the market digests the news
- and how those short-term moves line up with bigger-picture support and resistance
That’s the process I walk through in the video as we look at both oil and ES futures.
So if you’d like to see exactly how I’m mapping these levels on the charts — and how I’m thinking about the relationship between oil and index futures right now — make sure to watch the full breakdown in the video.
🚨 PS — Weekly Trading Show TOMORROW🚨
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