There is a tug-of-war in markets

Stocks skittish on Fed hike, US dollar saying it won't happen

The US dollar is hitting session lows across the board.

EUR/USD is trying to break above 1.1200 in what could set off another round of US dollar selling. The Aussie just ran through buy stops.

The Philly Fed and existing home sales were good but evidently not good enough to calm the nerves of a skittish market. The bond market is surging at the long end.

There is a serious lack of clarity that's hurting markets. The stock market is suddenly petrified of a Fed hike while the dollar is getting beat up on the idea that the Fed won't hike. The will-they-or-won't they mentality is creating an atmosphere of confusion in markets. It came to a head yesterday on the FOMC minutes leak.

Confusion brings contempt and right now what I see is a rush to the exits in crowded positions in US dollar and stock market longs.