Arebound in profit may not be enough to sustain the market rally when August rolls around as questions about the strength of the economic recovery will be weighing on investors over the next few months at least.

An improved bottom line for financial year 2010 is almost a given as operating conditions have brightened since the depth of the economic turmoil and most small caps have aggressively restructured their operations to cut costs to offset the drop in demand for their products and services.