The downside momentum in S&P 500 didn't continue much lower, and prices stabilized. That goes for today's weak performers: technology (XLK ETF) and healthcare (XLV ETF). Financials (XLF ETF) and both consumer discretionaries (XLY ETF) and staples (XLP ETF) have already retraced parts of their intraday downswings, while energy (XLE ETF) and materials (XLB ETF) are now back to almost unchanged since their open.

Debt markets did also get tranquil in the moment - high yield corporate debt (HYG ETF) isn't falling further while the investment grade one (LQD ETF) is quite holding ground.

The balance of very short-term risks appears to have stopped shifting, and prior S&P 500 uptrend looks ready to continue later today and then on. As a result, opening long position is justified.

Trading position (short-term; our opinion): long positions (100% position size) at market (that's 2874 currently) with stop-loss at 2700, and with initial upside target at 2970, which is where the 61.8% Fibonacci retracement is. Stay tuned as finetuning the open trade positions' parameters over the coming days is likely.

Thank you.

Monica Kingsley
Stock Trading Strategist
Sunshine Profits - Effective Investments through Diligence and Care