2nd board index opened higher with a Continuation Gap on Wednesday, after the Chinese New Year Holiday; and ended higher at 106.77 point, up4.65 points or 4.6%. As shown on the chart above, the 2nd board index broke above the 103.38 points, which was the highest of the year 2006. Therefore, 103.38 is not the immediate support for the 2nd board index. Nevertheless, as pointed by A, with the 2nd board index still staying above the rising 14, 21, 31 EMA dynamic support, the uptrend for the 2nd board remained intact.

In line with the 2nd board index bullish trading, volume for the 2nd board market was also higher. This suggested that the market participation for the 2nd board was indeed good, and the increased of the volume is likely also sustain the bullish sentiment. (Study B)

As circled by C, Stochastic %D line broke above 90% level, entering the short-term over-bought region. This suggested that the market movement for the short-term was indeed bullish, but however, has gone slightly over-heated. Nevertheless, with Stochastic staying above 70% level, the market movement for the short-term is expected to be bullish. (Study C)

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