After-market trade question

[SlowHabit]

I do not invest using technical analysis so my question will probably sound newbish. I will provide an example to help explain my question.

Let say company XYZ's price increases due to the recent release of its company's earnings. After-market, XYZ's price still increases and the next day, it opens a few dollars above its previous closing price. Has there been a study that shows that this price will drop during the next trading day?

The price drop doesn't mean that the price is lower than the previous closing price. It just means today's closing price is less than the all too optimistic opening price (but the stock's price still gains when compare to the previous day's closing price).

Obviously, the price drop has to be significant as in a 20% or more drop of the open price's gain.

[UrmaBlume]

Trading outside of the normal day session hours is mostly done by market sophisticates such as international hedge funds and money center banks. These are the traders that move the market.

The chart below is an overlay of the day and nite sessions. The red shows where the buying or selling in force in the nite session set the extreme even before the open of the day session.

[SlowHabit]

UrmaBlume,

Perhaps I didn't understand your post but I don't see how it help explains my confusion.

[UrmaBlume]

It demonstrates that a rise or decline started during the nite session often continues throughout the day.