Markets once again are exhibiting schizophrenic tendencies. Having broken important technical levels over the last week , the two day rally which started on the 6th has taken markets back above these points. The only constant lately has been volatility and to my mind this is likely to continue for the forseeable future.

Investors are being buffeted between Double Dip forecasts and those that believe we are in a recovery pause phase. There is no doubt that the stakes have been raised.

Fragile sentiment is very evident and the whippy price action has sidelined many. Caution is warranted until this conundrum is resolved and risk positions should be pared.