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On Tuesday, the Composite Index closed higher, gaining 2.94 points to 931.17 points. As shown on the chart above, the Composite Index stopped precisely at the previous 931 resistance. Composite Index is now re-testing this resistance. If this resistance was taken out successfully, there would be more room for the Composite Index. Support for the Composite Index is now remain at the 10 days Bollinger middle band as well as the 14days EMA (Exponential Moving Average). (Study A)

As circled by B, total market volume on Tuesday stood at 1.33 billion shares, a 41.9% increased from the previous trading day. Although much of the market volume were from the Mesdaq counters, it actually helps by keeping the overall market active. Therefore, if the Composite Index were to break above the resistance, growth of the high volume must maintain. (Study B)

As pointed by C, the %K of the Stochastic has re-entered the short-term bullish region on Tuesday, giving a first signal that the market sentiment would be bullish. Provided that the %K remain above the 70% level, when %D line rise above the 70% level, it shall confirm the %K bullish signal. (Study C)

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