Stock Market Actions After Multiple Gap Up Days, Analysis Using SPT ETF Since 1993

 stock here:

After this Face Ripping launch out of the recent up channel, I noted 2 big Gap Ups from the closing price to the opening price....aka markets moved most easily when the markets are closed and less money is needed to move them.    There were many bearish people at the beginning of the week, and they got their faces ripped off.   I went to cash on many positions, missing out on large gains, but had some Anti-USD bets like COIN, as well as Gold and Silver.    So it was a net positive week. 

But after 2 fairly large Gap up Days, I decided to so a bit of analysis using Excel.   What happens next?   So I got the entire data set of SPY since 1993 and proceeded to spend far too much time with it.   

If you want my spreadsheet, here it is on Box

https://app.box.com/s/ix5a0fdvq5b4t3ph5rhwjs88xznefhan

I started my blogging "life" with stock trading, lurking for years before making my first comment even, often on Slope Of Hope with Tim Knight.    Then came the Gulf Oil Crisis, and then.....Fukushima, after which I ran down many rabbit holes only to discover that the real difference between Conspiracy Theory and Conspiracy Fact, was usually just a matter of time.

Even in this Analysis of Gap Action, I uncovered a real conspiracy....wait for it.   LOL

If the third day is a down day that closes one of the gaps, it would be a "Upside Gap Three Methods" which traditionally was thought of as a bullish continuation pattern, but the patternsite lists it as 59% being a bearish reversal.   

https://www.thepatternsite.com/UpGap3Methods.html

Here are the numbers of consecutive large gap up days since SPY started in 1993 

For the case when there are JUST 2 large gap up days, and the third day is not also a large  gap up day (0.55%), there are quite a few negative gap down days, 72, versus 40 of the "smallish" gap up days.    

However, there are many large Gap Up Days on the Third Day, and Nine of the 27 have been since the Pandemic, just 18 of these between 1993 and 2019.   

A quick look at all the Gaps since 1993

And a look at SPY volume over the years, Curious how it is gently sloping downward after the 2008 Debacle.