As mentioned in last week's analysis, the 2nd board index returned to above the 14, 21, 31 EMA dynamic support on Monday, and therefore, the immediate outlook for the 2nd board index is still bullish bias. Provided that the 2nd board is still supported by the 14, 21, 31 EMA dynamic support, 2nd board index might resume its uptrend and retest the 103.36 Fibonacci Retracement resistance. (Study A)

Other than the support by the 14, 21, 31 EMA, the increase of volume is also a crucial element to sustain the uptrend of the 2nd board index. As indicated by B, volume for the 2nd board market increased 12.1%, but still below the 40-day VMA level. This suggests that the market participation is still weak, thus the sustainability of the 2nd board uptrend is still questionable. (Study B)

As circled at C, Stochastic is still showing a short-term neutral signal. If the Stochastic broke above 70% level, it would be the first short-term bullish signal. On the other hand, if the Stochastic fell below 30% level, it would be the first short-term bearish signal. (Study C)

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