On Monday, the 2nd board index ended higher to close at 104.46 points. As indicated by A, the 2nd board index is still situated above the 14, 21, 31 EMA, while the 14, 21, 31 EMA is still serving as the dynamic support. Therefore, provided that the 2nd board index can remain its position above the dynamic support, the uptrend shall sustain.

Volume for the 2nd board market increased 45.6% and managed to stay above the 40-day VMA level. This suggested an increase of market participation, and therefore, if the volume should remain higher than the 40-day VMA level, the bullish market sentiment shall continue. (Study B)

As circled at C, the Stochastic is still situated above the 90% level, which is the over bought region. Therefore, there is still a risk of a technical correction. However, provided that the Stochastic can stay above the 70% level after a possible technical correction, the market movement for the short term is likely to be bullish biased. (Study C)

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