There may be some bit of caution since we're trading at record levels, but there's a fair bit of money waiting to go into the market.

Everyone is sitting on their hands. No-one wants to play with everyone calling a 25 basis points rate rise on Wednesday.

A lot of investors are still unsure which way the market will go and so are reluctant to jump in.

There is a lot of interest in resources stocks and the sector looks set for a good move forward. There are all the usual stories about overseas predators targeting Australian miners, which look cheap on a world-wide comparison.

People are unwilling to take positions. There is concern about the Australian dollar because of its connection to rates, but also because everybody gets nervous around such volatility.

We don't have large bodies of water to moderate the temperatures.