On Tuesday, 11th of May, 2006, the Composite Index continued to consolidate, ended the Thursday's trading with a minor lost of 0.57 points to 966.05 points. As pointed by A, the Bollinger Bands pull-back effect of the Composite Index continued, and in general, target of the pull-back effect would be the 10 days Bollinger middle band dynamic support. If the Composite Index could rebound above the Bollinger middle band, outlook would remain on the positive bias. (Study A)

Nevertheless, resistance for the Composite Index remained at 970.5 while the support is still at the 10 days Bollinger middle band dynamic support as well as the 954 support level.

As pointed by B, total market volume on Thursday reduced to 1.6 billion shares, a 15% lower than the previous trading. In general, lower volume during a consolidation is rather healthy. Nevertheless, with the volume still above the 40 day VMA level, it suggested that the market was still actively participated. (Study B)

As circled by C, the MACD histogram has formed a round top signal, suggested that the Composite Index was indeed consolidating. The consolidation of the Composite Index would continue until the a round bottom signaled is formed in the histogram. (Study C)

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