I've watched the tape but can't figure out when you breathe out, does the upper & lower stomach get pulled in or expand out?

I'm not sure how to answer this, but you just tighten those muscles with the three sniffs, and hold them tight while you exhale. (It's been explained that you tighten them like you're zipping a tight pair of jeans.) After the 3 puffs, you relax and then inhale. Does this tell you what you wanted to know? You might email Julie, if you need a better explanation.

Susanna