The S&P 500's gains during the daynight vs. overnight


A while ago I saw some traders mention “all of the S&P 500’s gains have come from the overnight session. ”
Is this true?
The following chart demonstrates, from 1962 – present, what happens if you:

  1. Buy and hold the S&P 500, vs….
  2. Buy each day on the OPEN and sell each day on the CLOSE, vs…
  3. Buy each day on the CLOSE and sell the next morning on the OPEN.

*Assuming no slippage or transactions costs.

Click here to download the data in Excel.
As you can see, most of the S&P 500’s gains come from the day time. It’s only in the current economic expansion (2009 – present) in which we see some of the S&P’s gains/losses come from the overnight session.
I don’t think this is bullish nor bearish for the stock market. Just proves that there are more foreign investors/traders in the U.S. stock market than before, thanks to globalization.

4 comments add yours

  1. Please Troy for the ones we see oil very depressed and maybe opportunity, could you add oil studies if direction could be up for the next several months, or wait til february at least?

    • No idea how they did their study.
      This is actually a really easy study. Just download the data, and plug it into Excel.

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