S&P 500 futures are down around 1%.
In an email ahead of the opening bell, Jonathan Krinsky at MKM Partners wrote:
“Since 2012, SPY has “gapped-down” on the open 1% or more on 17 occasions. On just 5 of those days did SPY close lower than the open. In other words, 12 of 17 times it paid to buy the open. The average change from open to close of all 17 days was +0.33%. The worst result was 6/1/12, when the opening gap of -1.57% continued and SPY closed the day -2.52%. Since 2014, gap-downs have been even less bearish. Of the six 1%+ gap-downs since 2014, only one has gone on to close lower (1/27/15). The avg. open to close performance of those six days was +0.75%.”
“We are not making a call here to buy the open, only stating the data,” he wrote.
He also included this chart, which shows that the S&P 500 has touched its 50 day-moving average of 2045.75 (at the green line), signaling that the market could rally from its current levels.