The slide in stocks later yesterday may look to be a decisive start of a downtrend, but it lacked volume rising well above previous sessions. Then, let's consider the context. What groundbreaking message did Fed's Kaplan or Kashkari say? That more fiscal stimulus might be necessary, and that we need to get the virus under control so as to fix the economy. Well, both statements are more than kind of obvious.

Finally, the overnight price action is bullish - after the initial hit, we got another downswing attempt refused, and fast. The same goes for the one-hour old attempt to reverse the upswing from the overnight bottom. As a result, reopening long positions is justified.

Trading position (short-term; our opinion): long positions (100% position size) at market (that's 2862 currently) with stop-loss at 2770 and the initial upside target at 2970 are justified from the risk/reward perspective.

Thank you.

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