When it comes to the markets don't listen to governments. (update 1)

Governments are good at one thing when it comes to the markets which is creating volatility. Goverment stimulus/bailouts have clearly distorted markets. Fundamentals (weakish rises at depressed levels) have overextended a stock rally. As noted in Market correction could be on it's way - June 2009 volumes in recent stock rallies is now thinning out. So a correction is on it's way, to what extend it will be is hard to predict, but as a current report says, insiders (company executives) that hold shares are selling, from businessday.

"Sales by CEOs, directors and senior officers have accelerated to the highest level since June 2007, two months before credit markets froze, as the S&P 500 rebounded from its 12-year low in March. The increase is making investors more skittish because executives presumably have the best information about their companies' prospects."

Technically and fundamentally there is growing evidence that a major sell is on the cards. This could be when company earnings come in weak and technically any supports that occurred on the main indices could break hence a steeper sell off.

Finally,

"Executives at 252 companies in the S&P 500 unloaded shares since March 10, with total net sales reaching $US1.2 billion, according to data compiled by Princeton, New Jersey-based InsiderScore, which tracks stocks. Companies with net sellers outnumbered those with buyers by almost 9-to-1 last week, versus a ratio of about 1-to-1 in the first week of the rally.

"They're looking to take some money off the table because they think the rally will come to an end," said Ben Silverman, the Seattle-based research director at InsiderScore. "It's the most bearish we've seen insiders, on a whole, in two years."