Days like today tend to turn smack talking bears into nervous nellies with itchy trigger fingers. This gives rise to a nice little stock market pop that makes everybody wonder if we really have seen th worst of it and bottomed. Maybe we have, though I seriously doubt it. More likely, what we have today is a good old fashioned short squeeze.
Take a look at the Nasdaq chart below. If today's price bar had been wide ranging, closed near the high, pushed through 2400 and been on high volume, I would be rethinking my game plan. As we can see, that's not what happened. Instead, we got a weak little pop on below average volume, which is certainly not cause to change our market stance.
If you are holding shorts and feeling a little pressure, look away and do something totally non-market related. Let your stops work for you. You placed them where you did for a reason. Covering now could just lead to trading yourself out of a good position.
If you are wrong, and we are in the midst of reversing, big deal. After all, you prudently managed your risk-reward and position sizes before the trade; so a few losing trades ain't gonna kill ya. You did do that, right?