The Wall Street narrative on Wednesday suggests that even though inflation numbers are higher, it’s possible that the Federal Reserve may have to pivot. I don’t subscribe to this theory, at least not yet, as interest rates still have a long way to go before they are “neutral.” The fact is that inflation is at least three times what the Federal Reserve likes, so they are more likely than not going to have to continue tightening more than Wall Street is comfortable with.

Approaching the 13,500 Level

Nonetheless, the buying pressure seems to be there, and it’s going to be worth noting that we are getting close to the 13,500 level. That’s an area that should be rather resistive, so if we were to break above there, then it’s likely that the market goes looking to the 14,000 level. The 14,000 level also is where the 200-day EMA is sitting and dropping lower. The 200-Day EMA will be an area where people are paying close attention, as it defines the longer-term trend.