The 2nd board index ended higher on Thursday, while successfully staying above the 103.36 Fibonacci Retracement level. Despite a minor retreat, the 2nd board managed to rebound from 103.36 level, closing the 0.55 of a point higher to 104 points. Meanwhile, as indicated by A, the 14, 21, 31 EMA is still serving as the dynamic support and therefore provided that the 2nd board can remain above the dynamic support, the uptrend is likely to continue.

As indicated by B, volume for the 2nd board market also increased and returned to above the 40-day VMA level. This suggests that the 2nd board market was actively participated, and if the volume should remain above the 40-day VMA level, the uptrend for the 2nd board would likely to stay intact. (Study B)

As circled at C, %D of the Stochastic has gone above 90% level, and entered the short term over-bought region. This suggests that the short term movement for the 2nd board index has gone over-heated and the is a risk of a technical correction. If the Stochastic should fall below 90% level, it would be the technical correction signal. However, if the Stochastic should maintain above the 70% level after the possible correction, the market movement for the short term is still bullish biased. (Study C)

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