Equity markets pulled back on Wednesday following weaker-than-expected results from Target. Target not only reported weak but warned about a potentially weak quarter in Q4 along with rising inventories. The news sent the stock down more than 15% at the low of the day and took the S&P 500 index down nearly a full percentage point along with it. The move has the S&P 500 confirming resistance at the 4,000 level where it has been present before. If the index can't overcome this hurdle the odds are high that it will retest the 3,800 level or lower.

Wednesday's move comes despite a stronger-than-expected retail sales figure that has sales up more than 1.0% from the previous month. While good news, the gains are due in large part to inflation which is still raging and a sign the FOMC has more work to do. The next FOMC meeting is in less than 1 month and should bring at least another 50 basis points interest rate increase.