Equities tread water as stubborn inflation tempers the hope that the Fed could pause rate hikes. Still, the FTSE 100 remains on an upward trajectory after bouncing off the 20-day SMA on the daily chart. This is a strong sign that the uptrend has resumed in the medium-term. But the short-term price action could struggle with the hourly RSI showing signs of overextension as the index reaches the round number 8000. A pullback would allow the bulls to catch their breath and 7900 will be the first level to be tested.
