1% Gap Openings

With the S&P 500 poised to open up more than 1% this morning, we looked at recent positive gap openings (using the SPY ETF as a proxy) to see how the S&P 500 typically performs from the open to close.  As shown, since the second half of 2007, the average return is 0.4%. 

Today's intraday trading will be closely watched as a gauge of the market's sentiment.  In the table below, we have highlighted each of the 1% gaps since the S&P 500's low on March 10th.  In all three of these occurrences, not only did the market gap higher, but it followed through in the regular session with gains of another 1% each time.  If the market can manage to build on these gains when the opening bell rings, it will be an indication that this rally has room to run.

 

Subscribe to Bespoke Premium to receive more in-depth research from Bespoke.