      I will begin with Level II data. Pockets of supply and demand can beseen throughout the Level II screen. As you get farther from the insidequote, the reliability of the quotes generally becomes less. The reason forthis is that market makers often post bids and offers that they have littleor no intention of honoring. One theory for this behavior could be that themarket maker is giving the "appearance" of supply or demand to "fake"support or resistance in support of the firm's true position. Of course,not all "far away" quotes are bogus. Many represent customer limit orderswhich are tme supply and demand. Within an eighth of a point of the insidequote, market maker bids and offers tend to be the most reliable. At theinside quote, the vast majority of market maker bids and offers aregenuine. This is partly because of the SOES mandatory execution rule, whichallows market makers at the inside quote to get "picked off" by tradersusing SOES. Therefore, market makers that are not interested in buying andselling typically "hang back" from the inside quote.