New York, NY – The S&P 500 ETF (NYSEARCA: SPY) experienced a 1% increase at the open of the market today. Understanding how the ETF typically performs on days with such significant gaps provides valuable insight for investors.

Historical data reveals that Fridays have seen the second-highest frequency of 1% or more gaps higher, with 71 occurrences. This figure comes in just under Tuesdays, which have experienced 80 such occurrences.

Analysis of past Fridays where SPY has gapped up by at least 1% shows that the median change from the open to close was a further gain of 0.27%, with a positive return rate of 59%. This suggests a general bullish trend on these days.

Furthermore, SPY has shown its best open-to-close performance on Wednesdays after gapping up by 1% or more, with an average gain of 0.50% and a consistency rate of gains at 67%.

Overall, when SPY gaps up by 1% or more, there is a 90% chance of it finishing higher for the day. However, there is still a 10% probability of the market giving up its opening rally, highlighting the importance of caution despite the initial gains.

Mondays have proven to be the least favorable days for holding 1% or more opening gains, with 14% of those occasions seeing the entire opening gap erased. This data underscores the need for vigilance at the start of the trading week.

A closer look at the ten most recent 1% or more gaps higher in SPY reveals that while six of these occurred on Tuesdays, the market’s overall performance from open to close has been mixed. Despite a few instances of trading lower from open to close, complete erasure of the opening gap has been a rare occurrence.

These insights provide valuable information for investors looking to navigate the market during periods of significant gaps in the S&P 500 ETF. By understanding historical patterns and trends, traders can make more informed decisions to optimize their investment strategies.