Analyzing the S&P 500 Market Close on July 15, 2024

Introduction

As we approach the market close on July 15, 2024, at 15:52, we enter what I call the “golden zone” or “sunset” period for the S&P 500. This is a critical time for traders as it represents the final trading moments of the day. Missing this window means waiting until the next day for new opportunities.

Observations Leading to the Close

Volatility in the Final Minutes

Starting in Q3, it’s crucial to monitor the volatile price movements as the trading day winds down. The price touches the second VWAP standard deviation line from below, even dipping underneath it. According to traditional trading theories, this suggests that the price may be undervalued.

Key Observation: The price moving below the second VWAP standard deviation line indicates potential undervaluation.

Footprint Chart Analysis

For this analysis, the footprint chart is set to a 10-range mode, providing a more uniform view of price movement.

Absorption at 15:51: There is an observable absorption at this time. Following this, the footprint chart indicates a strong downward price movement, forming a bearish imbalance. This could be referred to as an FVG (Fair Value Gap) on a traditional chart. In the same price range, a bullish FVG forms as the price starts to move upward, signaling a potential buying opportunity.

Cumulative Volume Delta Indicator: The CVD indicator shows a price reversal (indicated by a purple arrow), further confirming the potential upward movement.

Significant Reversal at 15:53: The volume spikes significantly at this time, marking a clear reversal point.

Trading Strategy: How Long to Hold the Position?

Once a long position is established, the key question is: how long should it be held?

Bookmap Heatmap Analysis: The Bookmap heatmap can help answer this. By focusing on the SVP (Session Volume Profile) indicator, traders can identify the price level with the highest volume, which serves as a target for exiting the position.

Conclusion

The analysis of the final moments before the market close on July 15, 2024, highlights the importance of monitoring key indicators such as VWAP, footprint charts, and volume profiles. By understanding the dynamics at play during this volatile period, traders can make informed decisions and potentially capitalize on the price movements.