Following Trump's tariffs pause announcement yesterday, risk assets rallied hard with record breaking moves. The S&P 500 soared more than 9% in its third largest daily gain since World War II. One for the history books.
Liquidity and growth expectations are key drivers of the stock market, so when those go positive, we see the market rallying. The tariffs pause eased the recessionary fears and unleashed the huge bidding amid sentiment being way overstretched to the downside.
Even if we are not out of the woods yet, I'd say that this new development showed that Trump just wanted to reset global trade barriers and lower them for everyone (Europe has been even calling for 0 for 0 tariffs). If he succeeds, that's bullish for global growth and stocks.
In the Trump 2.0 era conditions change quickly, so we should always be on top of things, but all else being equal, I think the chances are skewed to the upside for the S&P 500, and more so if US and China start negotiations.
On the daily chart, we can see more clearly the huge rally yesterday which stalled at the key resistance around the 5512 level. That's where the sellers stepped in with a defined risk above the level to position for a drop back into the 4805 support. The buyers will want to see the price breaking higher to extend the rally into the downward trendline and target a break above it.
This article was written by Giuseppe Dellamotta at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( S&P 500 posted the third largest daily gain since World War II. What's next? )
Also on site :