About imbalance, last 10 minutes of the trading day + Levels for May 8th

The Last 15 minutes are Very Important!

by Ilan Levy-Mayer, VP

For those engaged in trading index futures, particularly day trading in instruments like the mini NASDAQ, mini S&P500, and micro NASDAQ, it’s becoming increasingly clear that the final 10 to 15 minutes of the trading session are gaining significance.

The advent of zero-day expiration options and the earnings season seem to be driving a surge in volume and market activity during this closing window. A key metric I monitor is what I term ‘the imbalance,’ which reflects the trading dynamics of the constituent stocks within these indices, including major players like Microsoft and Netflix, among others. Various platforms, including TradeTheNews.com, offer insights into this imbalance, and as demonstrated in the screenshot provided, we extend a complimentary trial to TTN’s acclaimed services.

What you will see below is the last trading day there was a significant imbalance, the screen shot below from TTN shows an “imbalance to the sell side of 2.0 Billion”

You can also see the large downside move that took place the same day during the last 15 minutes along with HIGH volume, almost as much as the rest of the day session…..

AGAIN, this is NOT meant as a recommendation or as an indicator….simply another factor to pay attention to.

This brief article isn’t a guide on how to trade in these crucial final minutes but rather a prompt to acknowledge their importance. As a trader, you should dedicate more time to studying and understanding this period. Below, you’ll find a chart of mini S&P 500 from April 30th session, complete with volume and additional analyses for your consideration.

Daily Levels for May 8th, 2024

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* This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.