Nov
04

Post-Fed Day Gaps

By on Thursday, November 4th, 2010 at 10:17 am

The table below highlights the last 30 occurrences since 1990 in which S&P futures gapped up (above the previous day’s high) on the session following a Fed day…

S&P Futures Gap Up Post-FOMC Announcement
11/04/10… S&P futures ???
04/29/10… S&P futures close -1.1% from open one day later
03/17/10… S&P futures close -0.2% from open two days later
01/28/10… S&P futures close -1.6% from open same day
04/30/09… S&P futures close -1.1% from open same day
03/19/09… S&P futures close -2.6% from open same day
03/19/08… S&P futures close -2.9% from open same day
09/19/07… S&P futures close -0.1% from open same day
12/13/06… S&P futures close -0.2% from open same day
10/26/06… S&P futures close -0.5% from open one day later
06/30/06… S&P futures close -0.4% from open same day
08/10/05… S&P futures close -0.4% from open same day
03/17/04… S&P futures close -0.7% from open two days later
08/13/03… S&P futures close -0.8% from open same day
06/27/02… S&P futures close -1.4% from open two days later
05/08/02… S&P futures close -1.1% from open two days later
01/31/02… S&P futures close -2.1% from open two days later
03/31/99… S&P futures close -2.2% from open same day
08/19/98… S&P futures close -0.7% from open same day
05/20/98… S&P futures close -0.4% from open one day later
02/05/98… S&P futures close -0.6% from open same day
07/03/97… S&P futures close -0.5% from open one day later
12/20/95… S&P futures close -1.0% from open same day
05/24/95… S&P futures close -0.2% from open same day
12/22/93… S&P futures close +1.0% from open two days later
08/18/93… S&P futures close +0.2% from open two days later
02/04/93… S&P futures close -0.1% from open two days later
07/02/92… S&P futures close -0.4% from open same day
08/21/91… S&P futures close +2.4% from open two days later
03/27/91… S&P futures close -0.6% from open same day
02/07/91… S&P futures close -0.7% from open same day

In each of the last 23 occurrences, and in 27 out of 30 occurrences since 1990, S&P futures settled below the opening price either the same day or within the next couple of days. That’s significantly greater than the 67% random chance for a settlement below today’s open within the next few sessions. This signal calls for a close below today’s open of SPZ 1208 either today or by Monday at the latest.

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Disclaimer

Comments, data and trading signals herein are for informational purposes only and are not recommendations to buy or sell. All information presented is believed to be accurate but is not guaranteed.