Tuesday, September 27, 2011

Large Gaps After Large Up Days

SPY is gapping up large this morning after rising 2.3% yesterday.  Below is a study showing how SPY has performed intraday under similar circumstances over the last 8 years.

Based on other gap studies we have seen, the negative results are no surprise.  Traders may want to be careful of chasing long entries at the open.

1 comment:

Michele said...

I agree. This rally feels to me to be about out of steam right here. I'm looking for lower on Wednesday.