Your everyday short squeeze

One of the charts that have become somewhat infamous on social media over the last couple of years is the one shown below. It shows the returns to an investment in the S&P 500 held every day from close to the next day’s close (CTC), from open to close (OTC) and from close to the next day’s open (CTO). Just investing in the S&P 500 when it is closed delivers about the same return as investing in it when it is open. How can the return of the stock market be the same when it is open and millions of trades are executed than when it is closed?

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