The S&P 500 got hammered after the open, but the bleeding stopped as the high-yield corporate bonds (HYG ETF) stabilized. That was enough for stocks to start advancing, without really offering a suitable entry point from the risk reward ratio (they increased their relative distance from the HYG:SHY ratio even more).

What is a stock bull to do, now that it appears there isn't much life left in the correction? Look for a kneejerk reaction along the lines of yesterday's China trade deal spat. And that's what I'll also do by placing a stink bid that may or may not (that's more likely) get executed in today's overnight trading, and adjust that order during the European session

Please see Trading position section for details.

Trading position (short-term; our opinion): long position (100% position size) (entered via buy limit order at 3095) with stop-loss at 2570 and the initial upside target at 3220.

Thank you.

Monica Kingsley
Stock Trading Strategist
Sunshine Profits: Analysis. Care. Profits.