Gap Down and Even More Downside from the Open in SPY – A Trading Scenario

Today SPY opened down about 0.8%. From then it has fallen even more, and in time of writing is down 1.5% since the open. A quite tough day for the longs.

Looking at what has happened on similar days since January 2010 (open more than 0.7% down and falling more than 1% from the open) before the last hour of trading, we get the following results: 5 fills, 5 winners and an average of 0.7% gain in the last hour of trading.

FAQ:

– What happened to SPY on the day it opened down by 0.8% and fell even further?

On the day in question, SPY opened down by about 0.8% and continued to decline, ultimately falling by 1.5% from the open.

– How frequently have similar trading days occurred since January 2010?

Since January 2010, there have been instances where SPY opened more than 0.7% down and then fell more than 1% from the open before the last hour of trading.

– What were the results on days when SPY met these criteria?

On such days, there were 5 similar instances, and all of them resulted in gains in the last hour of trading. The average gain during the last hour was 0.7%.