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On Friday, the Composite Index ended mixed, gaining 2.08 points to 938.32 points. As indicated by A, 14, 21, 31 EMA were on still on the rise, and at the moment, 14 EMA is serving as the dynamic support, just like the Bollinger middle band. Nevertheless, the next support for the Composite Index is at 931 Fibonacci Retracement as well as the T3 dynamic support of the up trend channel. On the other hand, resistance remain at 946.47 Fibonacci Retracement as well as the T2 dynamic resistance of the up trend channel.

Total market volume on Friday stood at 847 million shares, a 29.8% lower than previous market volume. Mean while, the volume on Friday failed to stand above the 40 days VMA level, suggested that the market participation was relatively insufficient. Lower volume during consolidation phase is usually healthy and normal, but if the Composite Index were to rebound from the current support level and advance, volume above the 40 days VMA would be the crucial element. Or else, the sustainability of the up trend would be doubtful. (Study B)

As shown by C, MACD histogram continued to tick lower, suggested that the technical correction is still intact. However, it pays to monitor the histogram closely for if the histogram were to start rising again, it would be the first signal suggests an end to the correction. (Study C)

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