The Owls are currently in eighth place in the Championship table, but they are only outside the play-offs on goal difference.
Wednesday have lost just one of their last 14 matches, but Carvalhal is determined not to let his side get carried away with their good run of form.
“There are a lot of teams with better conditions than us," the Portuguese boss said.
“They invest a lot and have strong players and good coaches. They are buying very expensive players and have worked with the same coaches for two or three years.
“We are outsiders in this fight.”
Wednesday’s latest outing resulted in a 2-2 draw with Blackburn Rovers at Ewood Park.
Blackburn have shown signs of improvements under Paul Lambert, and the Owls once again showed their resilience in the fixture.
Wednesday found themselves behind twice in the contest, but goals from Modou Sougou and Lucas Joao rescued a point for the Yorkshire outfit.
With other results going in their favour, it moved them even closer to the top-six, and optimism is growing by the game at Hillsborough.
Wednesday’s next match comes against Stoke City in the Capital One Cup quarter-final on Tuesday, before they face a tough test against Derby County at the weekend.