Volatility is back and is going to last. For the second day in a row, the stock market sold off sharply on heavy downside volume, as measured buy our buying/selling index and our capitulation index. The fight between bulls and bears is raging and the scenario of the building of a large trading range starts to materialize. Our indicators are improving slowly : we observe more hedging activity in the option market and the bullish consensus among private investors is improving although there is still room before it flashes a buy signal.