A few quick notes pre-open

Well, I was going to post a study suggesting more downside along the lines of this one. With the futures down close to 2% that seems unnecessary. Therefore readers may rather check out the “2% Gaps Down” table from a while back.

It should be noted that since that study there have been 3 more instances – 2/17, 2/27, and 3/5. (I personally did not consider the 2/17 one valid because it came after a US holiday when the foreign markets were open for 2 days.) In every case the market continued lower that day, unlike many in the study. Also, the 3/5 instance was the only one of the 3 that managed a higher close in the next few days. I still consider a 2% gap open to have a short-term bullish influence, though. The 2/27 instance is really only the 2nd true maverick, along with 10/6/2008, among the bunch.