We like to treat days like yesterday as case studies for future similar events. With yesterday's large down gap and upside reversal, we wanted to know which stocks led the reversal and which stocks held the indices back from the open to the close.
To do this, we broke the Russell 1,000 into deciles (100 stocks in each decile) based on their opening gap. The first decile represents the 100 stocks that gapped down the least and the last decile represents the 100 stocks that gapped down the most. As shown in the chart below, the data clearly shows that the stocks that gapped down the most also rallied the most from the open to the close. The stocks that gapped down the least went up the least from the open to the close. Since we're looking for another large gap down at the open today, look for the stocks that gap down the most to do the best if you think we'll get another upside reversal.
Below we highlight the 25 stocks in the Russell 1,000 that went up the most from the open to the close yesterday.