On Friday, the 2nd board index continued its sideways movement, while still being supported by the 14, 21, 31 EMA support. Therefore, the 2nd board index is still at its consolidation stage. If the 2nd board was to the resume its uptrend, it must take out the 97.69 resistance successfully with high volume.

Volume for the 2nd board market was higher on Friday, and it was also above the 40 days VMA level. This suggested that the 2nd board market is still liquid, thus the market participation remained healthy. However, if the 2nd board index was to resume its uptrend, we must have the volume maintaining above the 40 days VMA level. (Study B)

On Friday, Stochastic remained weak while almost falling below 30%, and therefore, the short-term movement for the 2nd board index is likely to be bearish bias. If the Stochastic fell below 30% level, the short-term market movement is expected to stay bearish. (Study C)

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