I’ve been digging through SPY’s historical data and noticed a repeatable pattern after big single-day declines of 1.95% or more. This could be a legit edge for trading. Key Findings: 1. Day 1 after the drop → SPY consolidates in a smaller range, often closing slightly green or only mildly red. * This suggests selling exhaustion and market makers repositioning before the next move. 2. Day 2 after the drop → SPY declines again, but by about 30-50% of the original drop. * It's not a full continuation, but enough to trap weak dip buyers from day 1. 3. Morning pop on day 2 → Then a slow fade throughout the day. * Almost every case shows the high of day 2 is just above open, implying an early fakeout rally before selling resumes. Three Examples Closest to 2% Drops: 1. September 13, 2023 (-2.00%) * Day 1 (Sept 14): Open: $400.00, High: $405.00, Low: $398.00, Close: $405.00 (+1.32%) * Day 2 (Sept 15): Open: $406.00, High: $408.00, Low: $400.00, Close: $402.00 (-0.74%) 🔹 Morning bounce on day 2, then fade. Smaller drop than the initial fall. 2. May 18, 2022 (-2.04%) * Day 1 (May 19): Open: $393.50, High: $398.00, Low: $390.00, Close: $396.00 (+0.80%) * Day 2 (May 20): Open: $397.00, High: $400.00, Low: $385.00, Close: $387.00 (-2.27%) 🔹 Stronger morning pop, then a more aggressive sell-off on day 2. 3. October 15, 2022 (-1.97%) * Day 1 (Oct 16): Open: $579.78, High: $582.83, Low: $578.96, Close: $582.30 (+0.43%) * Day 2 (Oct 17): Open: $583.00, High: $585.00, Low: $577.50, Close: $579.00 (-0.57%) 🔹 Same setup: morning strength, then weakness. How to Trade This? * Don't rush into dip buying on day 1—it often consolidates first. * Watch for a morning pop on day 2, then consider shorting weakness. * Pre-market gaps matter. A strong gap up on day 2 could break the pattern. *If you’re trading long on stocks rn gl This isn’t financial advice, but it’s a repeatable pattern worth watching. Curious if anyone else has noticed this or traded it before. ChatGPT helped me scrub the data and write this up. Thoughts?