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Signals/3% Down Day

3% Down Day: What Happens After It Fires?

SPY falls 3% or more in a single session, close to close — panic-grade selling that makes front-page news. Such days cluster inside crises, so with the standard cooldown each occurrence marks the start of a distinct stress episode rather than every bad day of one crash.

The base rates

Since 1993, the 3% Down Day signal has fired 45 times on SPY (most recently on 2025-04-03). Six months later, SPY was higher 71% of the time (45 completed cases) with an average return of +7.9% and a median of +7.8%. Twelve months later, SPY was higher 76% of the time (45 completed cases), averaging +15.8% with a worst case of -30.9% and a best of +62.8%. Data through 2026-07-02.

Rule
Today's close <= 97% of yesterday's close.
45 occurrencesData: 1993-02-022026-07-02Cooldown: 20 trading daysLast trigger: 2025-04-03
Latest trigger2025-04-03
+38.8%
All horizons complete

SPY since this trigger: $536.70 → $744.78 (through 2026-07-02)

This trigger vs the 45-signal average
1w
-2.3%
avg +0.5%
1m
+5.0%
avg +0.7%
3m
+15.6%
avg +4.4%
6m
+24.7%
avg +7.9%
9m
+28.1%
avg +11.1%
12m
+22.8%
avg +15.8%
01

Forward returns

Horizon% PositiveAvg ReturnMedianBestWorstN
1w60%+0.53%+0.77%+11.33%-18.91%45
1m60%+0.68%+0.90%+14.89%-24.59%45
3m71%+4.41%+5.53%+26.15%-29.60%45
6m71%+7.89%+7.85%+36.05%-44.43%45
9m80%+11.09%+12.32%+51.12%-50.03%45
12m76%+15.77%+17.08%+62.75%-30.91%45
02

Trigger history

SPY with Trigger Markers

Signal trigger · log scale · weekly closes
03

Every occurrence

DateSPY1w1m3m6m9m12m
2025-04-03$536.70-2.26%+5.00%+15.65%+24.69%+28.14%+22.83%
2022-08-26$405.31-3.22%-10.35%-0.74%-2.23%+3.67%+10.82%
2022-06-13$375.00+0.02%+0.78%+4.83%+6.39%+3.81%+16.58%
2022-04-29$412.00-0.16%+0.23%-0.30%-5.58%-1.34%-0.28%
2020-10-28$326.66+5.17%+11.33%+13.29%+27.75%+34.24%+40.30%
2020-09-03$345.39-3.28%-1.63%+6.17%+10.52%+22.24%+31.18%
2020-06-11$300.61+3.72%+4.73%+11.07%+22.04%+31.09%+41.15%
2020-04-01$246.15+11.33%+14.89%+26.15%+36.05%+51.12%+62.75%
2020-02-24$322.42-4.13%-24.59%-8.37%+5.29%+10.97%+20.18%
2019-08-05$283.82+1.52%+3.60%+7.86%+15.94%+0.83%+16.29%
2018-12-04$270.25-1.77%-5.87%+1.56%+6.44%+10.29%+15.46%
2018-10-10$278.30+0.77%+0.79%-6.94%+4.26%+8.07%+6.46%
2018-02-05$263.93+0.53%+3.35%+1.13%+7.85%+3.02%+3.34%
2016-06-24$203.13+3.34%+6.71%+6.33%+10.95%+15.01%+19.77%
2015-08-21$197.63+0.83%-1.88%+5.53%-2.69%+3.84%+10.58%
2011-11-09$123.16+0.75%+2.35%+9.09%+10.11%+14.36%+12.27%
2011-09-22$112.86+2.83%+9.84%+10.02%+23.74%+18.25%+29.25%
2011-08-04$120.26-2.44%-2.00%+3.10%+11.87%+13.92%+15.87%
2010-06-04$106.82+2.68%-3.70%+2.48%+14.74%+24.01%+22.09%
2010-05-06$112.94+2.70%-6.60%-0.08%+6.21%+15.80%+18.30%
2010-02-04$106.44+1.59%+7.36%+6.11%+6.02%+12.69%+22.87%
2009-03-30$78.79+6.10%+10.92%+17.65%+34.94%+43.06%+49.00%
2009-02-17$79.22-2.20%+0.90%+15.16%+24.10%+38.37%+39.18%
2009-01-14$84.37-1.92%-1.91%+2.52%+11.60%+29.56%+36.22%
2008-11-05$96.19-10.78%-8.59%-9.57%-3.34%+5.21%+11.08%
2008-10-02$111.85-18.91%-13.43%-16.89%-24.67%-19.71%-8.37%
2008-09-04$124.03+1.19%-11.04%-29.60%-44.43%-23.77%-18.85%
2008-06-06$136.29-0.10%-6.64%-8.71%-37.41%-50.03%-30.91%
2007-02-27$139.50+0.14%+1.66%+9.13%+5.34%+1.04%-0.92%
2003-03-24$86.69-2.25%+6.33%+13.53%+18.30%+25.62%+26.27%
2002-09-03$88.28+3.87%-5.81%+6.63%-5.47%+12.32%+17.08%
2002-07-10$92.12-1.50%-1.27%-12.76%-0.79%-5.53%+7.79%
2002-01-29$110.28-1.01%+0.79%-2.19%-17.54%-18.74%-21.58%
2001-09-17$104.30-3.45%+5.46%+8.47%+12.61%+0.64%-15.79%
2001-03-12$118.08-0.62%-1.21%+6.79%-6.80%-5.10%-1.19%
2001-01-05$129.19+2.18%+4.80%-12.30%-7.35%-14.85%-11.03%
2000-04-04$145.75+3.20%-2.70%-0.77%-2.14%-7.38%-23.95%
2000-01-04$139.75+3.40%+2.46%+4.29%+3.49%+2.06%-3.40%
1998-09-10$97.25+4.88%+1.32%+21.98%+33.04%+33.48%+39.72%
1998-08-04$107.00-0.11%-7.16%+4.56%+19.07%+26.06%+22.08%
1998-01-09$92.31+4.33%+10.65%+20.12%+26.21%+6.74%+37.07%
1997-10-27$87.19+8.25%+9.24%+12.08%+25.45%+29.06%+22.72%
1997-08-15$89.66+3.23%+5.89%+2.54%+14.25%+23.46%+20.88%
1997-04-11$73.38+4.33%+14.47%+25.10%+32.41%+25.80%+51.10%
1996-03-08$63.50+0.99%+1.01%+6.50%+3.84%+17.75%+27.31%

Forward returns are computed from SPY closing prices. Cells showing “—” indicate the horizon has not yet elapsed for that trigger. Small samples from a generally rising market — base rates are evidence, not forecasts.