On Thursday., the 2nd board index further declined another 2.4 points to close at 98.66 points. As shown on the chart above, the 2nd board index fell below the 14, 21, 31 EMA dynamic support, and the EMA started declining. If the 2nd board index failed to rebound back to above the EMA level in the near future, the uptrend for the 2nd board index will end. (Study A).

As indicated by B, volume for the 2nd board market also declined, and failed to stay above the 40-day VMA level. This suggested a declined in market participation, thus the 2nd board index is likely to stay weak without sufficient capital inflow. (Study B)

As shown by the C arrow, Stochastic %K fell below 30% level and triggered the unconfirmed short-term bearish signal. If the %D fell below 30% level, it shall confirm the %K signal, and the short-term market movement for the 2nd board would be bearish biased. (Study C)

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