As shown on the chart above, the 2nd board index retreated 1.31 points to 103.15 points, with a daily low at 102.74 points. As indicated by A, the 2nd board index was precisely supported by the 14, 21, 31 EMA. Therefore, the 14, 21, 31 EMA is still serving as the dynamic support to the 2nd board index.

As the 2nd board index retreated, volume for the 2nd board market also declined 7.8%. However, volume for the 2nd board market remained above the 40-day VMA level, suggesting that the 2nd board market is still actively participated. If the 2nd board should continue supported by the dynamic support, with volume staying above the 40-day VMA level, the uptrend for the 2nd board index is likely to continue. (Study B)

As circled at C, the Stochastic %K line fell below the 90% level, suggested a technical correction signal. However, provided that the Stochastic can stay above the 70% level, the market movement for the short term is still bullish biased. (Study C)

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