2007-2-27 2006-11-1 If this market did bottom last Wednesday, it is quite possible for a base to form before the move higher. With volatility high (measured with Bollinger Band Width) we could certainly expect sideways action to precede the upmove. You can see how high volatility is in each of the four charts below. We do expect volatility to begin to decrease and this should coincide with the building of a base. In addition to the Bollinger Band Width indicator, each of the four charts below have support lines drawn. These are the lines that the indices have to stay above if we are to believe that the market is prepared to reverse, as opposed to having another move lower. As long as the indices stay above the lowest support line, the low from Wednesday of last week, we can assume that a base is forming before a strong reversal. Bollinger Band Width 159283 text/html http://www.nasdaqwizard.com/MidPics/mid053006.html 1.0 EN index,follow Bollinger Band Width Bollinger Band Width text