On Monday, the 2nd board index rose 1.08 points to 101.11 point. As indicated by A, the 2nd board index is testing the 14, 21, 31 EMA dynamic resistance again. If the 2nd board index can break above the falling dynamic resistance, it it likely to consolidate further.

Despite the 2nd board ended 1.08 points higher, volume for the 2nd board market fell 41.3%. As indicated by B, volume for the 2nd board market is still further below the 40-day VMA level. This suggests that the 2nd board market is indeed lack of participation, thus the 2nd board index is less likely to regain its strength.

As indicated by C, the Stochastic %K breaks above the 70% level on Monday, giving an unconfirmed short term bullish signal. If the %D line should break above the 70% level, it shall confirm the %K signal, and the market movement for the short term would be bullish biased. (Study C) Until that, Stochastic is currently showing a neutral signal.

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