Good news: Knicks play much better. Bad news: Still not good enough to beat Pacers.

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If you tried to use the words “moral victory” in the Knicks locker room Wednesday night the players’ reactions would have ranged from icy glares to a rant that would have earned them the same fine for swearing Boston’s Gerald Wallace was just given by the league.

There are no moral victories in the NBA. Especially not when you have lost six straight on your home court.

Especially not when you came within a borderline foul on Paul George as he shot a three in the final seconds of regulation, giving him the chance to tie the game at the free throw line (which he did). Despite the Knicks protestations, replays showed Iman Shumpert lightly touched George on the elbow and that was enough to get the call.

In the end a moral victory is how the Knicks are going to have to look at their 103-96 loss to the Pacers in overtime in Wednesday night at Madison Square Garden. It’s their only option.

There certainly were positives for the Knicks to take away from this game — the 13-0 run to start the game, the 19 points from Beno Udrih (forced into the rotation with Raymond Felton out), the energy they put out on defense, the fact the way they played would probably have beaten 26 other NBA teams. Just not the Pacers on three days rest.

Still, a at the end of the day the Knicks are 3-8 and about to head out on a rough West Coast road trip that includes the Trail Blazers and Clippers.

New York started out hot, holding the Pacers to 14 points on 25 percent shooting in the first quarter. Yet the Knicks couldn’t pull away against the always tough Pacers defense, scoring just 19 points on 34.8 percent shooting themselves.

On the second night of a back-to-back, the Knicks looked more and more tired and their defense wore down as the game went on. The Pacers put up 31 points on 52.6 percent shooting, plus hit 4-of-8 from three, in the final quarter.

Once again the Pacers defense took away the shots the Knicks wanted to get — New York shot just 46.9 percent inside the restricted area and 40.9 percent in the paint overall, plus they were 8-of-30 (26.7 percent from three).

Carmelo Anthony had 30 points on 10-of-28 shooting, but where you could really see his effort was on the boards — 18 rebounds, nine of them offensive. He tried to carry this team, but he doesn’t have the efficient game at both ends of the floor to take them as far as he wants.

‘Melo was outplayed by Paul George, who had 35 points on 12-of-26 shooting and was 7-of-11 in the fourth quarter and overtime, at one point scoring 11 straight points. Plus his defense was part of the reason it was another inefficient night shooting for Melo.

George hill added 23 and the Pacers are now 10-1. They are a team with an identity on both ends of the court.

The Knicks took a step toward finding that Wednesday but they still have a ways to go.