As shown on the chart above, the 2nd board was precisely resisted by L1 (99.40-100 points) Gap level. Mean while, as pointed by A, the Bollinger Band width contracted 8% on Monday, suggested that the 2nd board index is currently consolidating. Provided that the Bollinger Band width remained contracted, the consolidation for the 2nd board is expected to continue.

As pointed by B, volume for the 2nd board market increased 34.4% while remained above the 40 days VMA level. However, the increased of volume coupled with the retreat of the 2nd board index at the resistance level, suggested some selling pressure. (Study)

MACD histogram ticked lower again, and is likely to form a rounding top. The decline of the MACD histogram suggested a weakening of the bullish signal. If the MACD histogram formed a rounding top, it would be a technical correction signal for the 2nd board index. (Study C)

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