The S&P 500 hit a record intra-day high today, also breaking a major technical resistance level. This shows more upside in the US markets, all things remaining equal. But it would be wise not to look away from the rest of the global economy. The US election has captured the headlines and attention of markets and will be a formidable force in markets for some time.
Italy is going to have their Referendum in 2 weeks time, which could be another blow to the unit of the EU in budget balancing. The EU is already facing populist factions that want to have their own 'Brexit' moment, and a lot of the resentment is a byproduct of low growth.
China has restricted lending to real estate developers, which is starting to be seen in the home numbers, and soon GDP. How well the Chinese government manages the decline in home prices will have a larger impact on commodity prices than any type of stimulus plan or inflation trade that may come to fruition in the new administration.
The optimism in the US is hard to ignore, let alone short, but it is more important now to look at external factors to be the 'out of left field' news that shakes the mood in the US.