S&P 500 Performance Following 1%+ Lower Opens

The S&P 500 SPY ETF opened lower by more than 1% this Monday morning after no progress was made between the US and China on trade. When SPY opens down 1% or more, how does the ETF typically perform during regular trading hours from the open to the close? Since 1993 when SPY began trading, the ETF has averaged a decline of 0.27% from the open to the close when it opens down 1%+ on a Monday morning. As shown in the chart below, Monday is the worst day of the week for a 1%+ open lower.

When SPY has opened down 1%+ on Tuesdays or Fridays, it has actually bounced back very nicely throughout the trading day with an average open to close change of ~0.50%. On Wednesdays and Thursdays, the open to close change is basically flat following a 1%+ gap down.

Based on historical price action, big opens lower on a Monday typically see continued selling throughout the trading day, while Tuesdays and Fridays see buyers step in. 


Start a two-week free trial to Bespoke Institutional to access our thought-provoking investment research and all of ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.