  A pseudogap is shown to be a magnetic diffuson (MD) in a state with classical
localization order coexisting with Quantum Peierls (QP) order. A soft quantum
localization mode, a phason, ensures scale invariance with strong correlations
among different momentum states seen as a circular Fermi surface with a gap in
ARPES when phase fluctuations are random. These correlations imply a state with
coexisting order parameters at distinct length scales. Charge quantization and
scale invariance accounts for the sharp peak in the excess tunneling current at
V=0.
