As indicated by A, the 2nd board index tested the 14, 21,31 EMA but remains resisted by the 14, 21, 31 EMA. Therefore, the 14, 21,31 EMA is still serving as the dynamic resistance and therefore, there is still a risk of further decline for the 2nd board index. Nevertheless, the 100.02 Fibonacci Retracement will be the next support level for the 2nd board index.

As indicated by B, volume for the 2nd board market remains below the 40-day VMA level, suggesting that the market participation for the 2nd board market is still low; and therefore, the 2nd board index is less likely to increase its strength. (Study B)

As circled at C, the Stochastic %K declined but still staying marginally above the 30% level. At the moment, the Stochastic is still showing a short term neutral signal. If the Stochastic should fall below the 30% level again, it would be another short term bearish signal, and short term movement for the 2nd board index would be bearish biased. (Study C).

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