It’s been a strong session that has been swayed by hopes that the Fed is close to a slowdown in the pace of its interest-rate increases. According to the CME Fed Watch tool, the markets is now pricing a 80.6% probability of a 50 point hike at the central bank’s next meeting.

All sectors are comfortably on the green side led by Real Estate. Consumer Discretionary is being bolstered by a big moves in Amazon (AMZN) and Tesla (TSLA).

Short-term bond yields are dropping, with the 2-year dropping to 4.328%, and the 10-year to 3.849%. Lower yields are also bringing a massive drop in the dollar. The index (DXY) is down almost 2%, now oversold, and at its lowest level since early September.

Market breadth is decidedly bullish this afternoon, with up volume leading.

The CPI report was music to the bull’s ears, in the short-term this improvement in the inflation suggests a potential light at the end of the tunnel. If the S&P 500 closes above its October high of 3900, this could open the door for further upside to the 4000-4800 range.