As pointed by A, the 14, 21, 31 EMA continued serving as the dynamic resistance to the 2nd board index. On Wednesday, the 2nd board ended 2 points or 2.1% lower, and temporary supported by the 91.72 Fibonacci Retracement. If the 2nd board index failed to stay above this level, the next support level would be 87.69 Fibonacci Retracement. Nevertheless, provided that the 2nd board index is still trading below the falling dynamic resistance the outlook for the 2nd board index shall remained negative bias.

As pointed by B, volume for the 2nd board market remained low, while still staying below the 40 days VMA level. This suggested that the participation of 2nd board market is still relatively insufficient, thus the market is likely to stay weak. (Study B)

Stochastic %K did not break above 70% level. At the moment, Stochastic is still showing a short-term neutral signal. If the Stochastic fell below 30% level, it should be another short-term bearish signal. (Study C)

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