As indicated by A, the Bollinger Band width expands another 39% on Tuesday, with the 2ndboard index remains above the Bollinger middle band. Therefore, it indicates an increase of the upside volatility, thus a bullish signal. Provided that the Bollinger Band width can remain expanding, there are more upside room for the 2ndboard index.

Nevertheless, as shown on the chart above, the 104.6 points level is now the immediate resistance to the 2ndboard index. As for the support, it is now at the Bollinger middle band or the 14, 21, 31 EMA dynamic support.

As indicated by B, volume for the 2nd board market also increased 42.8%, and almost touching the 40-day VMA level. If the volume should break above the 40-day VMA level, it would suggests an increase of the market participation, and the market sentiment is likely to improve.

As circled at C, the Stochastic is showing a short term bullish signal. Provided that the Stochastic is still above the 70% level, the short term movement for the 2nd board index is still bullish biased. (Study C)

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