Sp500 Volume Profile Aug 6th


Junior member
13 1
Friday 6th was expected to be a busy day due to important news releases at 7.30 (central time).

As soon as the news released, the future loses 10 points in ... seconds , with no volumes, repeating similar yesterday same time pattern.

Who was in front of the monitor was likely to have had a feeling of "emptiness " as if all big investors had simultaneously shut down their monitors and "gone for a coffee together".

Buyers soon appear, and the strongest pre-opening session of the week in terms of volumes (green area in the chart) occurs.

The first hour of trading ( red area in the chart ) brings the price under yesterday's POC (1119-1120), then down again, breaking the previous low and ... the entire week value's area: that means really ... fear!

Then, some signals of inversion; a new volume area starts forming under the previous low (small blue bell in the chart) that could suggest a possible long entry in reversal.

After 3 hours of price congestion big investors come back from their coffe-break and started buying; price break out the congestion area and rally to the level they started the second downhill from : 1119-1120.

It seems that big investors have long coffe-breaks during important news releases, expecially when prices are too high for them.
Does it make sense?


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