As indicated by A, the 2nd board index breached above the 103.36 Fibonacci Retracement by margin on Monday, closing at 103.45 points. However, the break out was still not yet confirmed. In order to have a valid break-out, the 2nd board index must stay above the 103.36 level successfully. Nevertheless, as indicated by A1, the 14, 21, 31 EMA is still serving as the rising dynamic support to the 2nd board index. Therefore, provided that the 2nd board index can remain above the rising dynamic support, the outlook for the 2nd board index is still positive biased.

Despite the break-out of the 103.36 resistance, volume for the 2nd board market was lower. The lower volume was mainly caused by the coming public holidays as investor remained sidelines before the broad market shows a clear market direction. Nevertheless, if volume can pick up and resume to above the 40-day VMA level, the uptrend for the 2nd board is likely to continue. (Study B)

Although the volume for the 2nd board market was lower, Stochastic remained in the short term bullish region. As circled at C, the Stochastic is still showing a short term bullish signal. Provided that the Stochastic can stay above the 70% level, the market movement for the short term is likely to be bullish biased. (Study C)

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