S&P 500 Spiders ETF Performance On Days of Large Pre-Market Gaps

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Hickey and Walters (Bespoke) submit: With the S&P 500 tracking Spyders (NYSEARCA:SPY) trading down 140 bps in the pre-market, we looked at similar gaps in the ETF to see how it typically trades from the open to close on these days. Below we break down the gaps at different price points to see if the market usually reverses the gap or continues the trend. As shown, the more the ETF gaps down, the more likely it is to reverse and go higher from open to close.

Because we are bound to gap up again at some point, we have also included the average open to close change on positive gaps as well.

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spy gaps