The image above perfectly describes the market situation today. The FTSE has had 10 straight gain days (assuming it is up today). It means the index is nearly flat year to date. Given all the bad news this is an impressive feat...for now. However, the sentiment of everyone I come across is that this is a blip and come September things will unwind again.
What has amazed me recently though is the lack of people on the bull run; so many seem out of the market. A good example of this is the gold and dollar price. Both these rise when fear is high and at the moment both of these indicators are showing a lot of fear of equities and bonds. Volumes too are low, although this time of year they always are.
All I can say, is what a miss for those who have ignored the equity rally. The party will end and equities will fall, but to miss the boat altogether is poor trading judgement.