dgabriel, Sorry, it is a weekly 5 year chart that I was looking at. Just the standard Bollinger Bands (20, 2 standard deviations). I don't have my software in front of me, I was looking at it on bigcharts.com. No question, it was the tightest it's been since the summer of '98.
re fund outflows: Magellan's outflows last month were the biggest since September. If that isn't significant, I don't know what is! I think we are about to have another bear market rally that will take us around 28% higher (that's the average from past rallies). Take a look at this graph showing the volatility of the Nasdaq (volatility is measured as the ATR divided by last close): Notice how every time there is a spike in the yellow line we have a short term bottom and a couter trend rally?