On Thursday, the 2nd board index continued its consolidation in the trading of 98.5 support and 104.6 resistance. As indicated by A, the 98.5 level is still the immediate support level for the 2nd board index. Meanwhile, 14, 21, 31 EMA is moving flat, suggesting an unclear market direction. Therefore, the 2nd board index likely to stay in its consolidation.

Volume for the 2nd board market fell 16%, while staying further below the 40-day VMA level. Still, the volume below the 40-day VMA suggests that the market activity is relatively low. Therefore, without sufficient market participation, the 2nd board index expect to stay weak or sideways in its consolidation.

As of Thursday, the Stochastic is still showing a short term neutral signal around the 50% level. If the Stochastic should break above the 70% level, it shall suggest a short term bullish signal. On the other hand, if the Stochastic should fall below the 30% level, it shall suggest a short term bearish signal.

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