U.S. stocks jumped on Tuesday, building on a strong rally in the previous session as concerns about a speculative retail trading frenzy continued to ease.

The S&P 500 gained 1.4% to 3,826.31, pushing its two-day rally to 3%. 

Investors took it as a sign that the speculative mania from retail traders is unwinding, which is healthy for the overall market and investor confidence. The stock market suffered its worst week since October last week as many grew worried that the wild trading activity in those heavily shorted names could be contagious and spill over to other areas of the markets.

Strong earnings from Amazon and Alphabet helped futures. Amazon reported earnings nearly double Wall Street estimates; however, the stock move was tempered by news that Jeff Bezos would step down as CEO. Amazon’s stock edged 0.3% higher in after hours trading.

Shares of Alphabet surged more than 7% in after hours trading after the technology giant reported 23% revenue growth and topped estimates for earnings.
 

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Plan A : Long if market doesn't retrace much and supported firm above 3825. Targets are 3841, 3855 and 3873.

Plan B : Short if market failed to support above 3825. Targets are 3799, 3776 and 3742.

U.S. stock futures rose slightly in overnight trading on Tuesday, after a strong market rally as the Reddit trading mania continued to unwind.

The tech-heavy Nasdaq Composite popped 1.6% to 13,612.78, bringing its week-to-date gains to more than 4%.

Investors are also monitoring negotiations in Washington surrounding another stimulus package. President Joe Biden met with the 10 Republican senators on Monday to discuss an alternative, smaller aid proposal to his $1.9 trillion package.

Private payroll data from January is released at 8:15 a.m. on Wednesday from ADP. Economists polled by Dow Jones are expecting private sector jobs grew by 50,000 in January, compared to the loss of 123,000 in December.
 

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Plan A : Long if market doesn't retrace much and supported firm  above 13514. Targets are 13545, 13580 and 13614.

Plan B : Short if market failed to support above 13514. Targets are 13474, 13430 and 13389.