S&P 500 rises to the best levels since February

The S&P 500 is above 6000 for the first time since February.

I think there are economic risks out there but the price action right now is telling. There is a strong inclination to buy the dip and a belief in a Trump put. Call it at TACO trade or a belief that trade deals will come but it’s bullish.

Today’s data dimmed the odds of a Fed rate cut in the near and medium-term but it didn’t hurt stock markets at all.

In addition, you have impressive technicals here. The slump yesterday was instantly bought and we’re now above the May highs with a clear target at the February high of 6147.

A big risk I see is the US budget bill falling apart or Trump re-instating tariffs but hope reigns supreme at the moment.

This article was written by Adam Button at www.forexlive.com.