The 2nd board index ended severely lower on Tuesday, corrected 7.48 points or 6.9% to close at 100.73 points. As shown on the chart above, the 2nd board has broken below the 103.53 support while temporary supported by the 21 days Exponential Moving Average line. Therefore, as pointed by A, the 14, 21, 31 EMA remained as the dynamic support to the 2nd board index. If the 2nd board index could bu supported by the 14, 21, 31 EMA, the 2nd board still has not turned into a bear trend yet. (Study A)

As pointed by B, whenever volume hit new high, it signals that the market has gone over-heated, and implied that the risk for a correction will be relatively higher. Therefore, the 2nd board index is now in a correction stage. (Study B)

Stochastic %K fell below 70% level, signaling an end to the short-term bullish market. If %D fell below 70% level, it shall confirm the %K signal. If Stochastic fell below 30% level, it would be a short-term bearish signal. (Study C)

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