Investors continue to bet on growth despite the rising specter of inflation. The S&P 500 reversed early losses on Wednesday to close with a small gain going into the holiday weekend. The move is the 15th day of trading within a near-term consolidation range that is fast becoming a bullish-looking flag pattern. If the market breaks out to the upside and confirms this pattern within the next week or so it should rally well into the end of the year.

In economic news, the PCE Price Index was released on Wednesday coming in largely as expected. The rub is that ?as expected? included a 0.20% month-to-month increase and the fastest pace of YOY gains for several decades. At this pace, the market should expect the first interest rate hikes to come well before the middle of next year.