1% Downside Gaps Since March Lows

Even though the last nine weeks has been one of the strongest nine-week runs on record, today will mark the 11th time in the last 44 trading days that the S&P 500 ETF (SPY) had a negative gap opening of 1% or more.  In the table below we highlight each of those days.  Given that the market has been so strong, one would expect to see buying into these weak opens.  However, on the ten prior negative gaps of 1% or more, SPY has actually averaged a slightly negative (-0.03%) return from the open to the close with positive returns only half of the time.

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