After successfully rebounded from the 14, 21, 31 EMA dynamic support on Wednesday, the 2nd board index ended higher on Friday and closed 0.82 of a point to 103.02 points. As indicated by A, the 2nd board index is now testing the 103.36 Fibonacci Retracement resistance. Meanwhile, the 14, 21, 31 EMA, as indicated by A1, is still serving as the dynamic support to the 2nd board index. Provided that the 2nd board index remains above the dynamic support, the outlook for the 2nd board index is bullish biased.

Volume for the 2nd board market declined as investors remained sidelines in anticipating a shorter trading week ahead, due to public holidays. However, volume on Friday was above the 40-day VMA level, suggested the 2nd board was still actively participated. If the 2nd board was to break above the 103.36 resistance, we must have an increase of volume to confirm the break out. (Study B)

As circled at C, Stochastic %D broke above the 70% level on Friday and confirmed the %K signal which was triggered on Wednesday. Therefore, the Stochastic is now showing a short term bullish signal, and the market movement for the short term is likely to bullish biased. (Study C)

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