As indicated by A, the 2ndboard index breaks above the 104.6 resistance, closing the day at 105.09 points, up 0.66 of a point. Meanwhile, the Bollinger Band Width continue to expand 19%, therefore, the Bollinger Bands bullish signal shall remain, until the Bollinger Band Width starts to contract.

The next major resistance for the 2ndboard shall be at 108.75 points while the Bollinger Middle Band shall continue serving as the dynamic support to the 2ndboard index.

Although the 2ndboard index ended higher, volume for the 2ndboard market continue declining. As indicated by B, volume for the 2ndboard index remains below the 40-day VMA level, suggesting that the market participation of the 2ndboard is still insufficient, and therefore failed to confirm the rally. Unless volume could pick up and stay above the 40-day VMA level, the sustainability of the currently is still questionable.

As circled at C, both the %K and %D line of the Stochastic are touching the 100% level suggesting that the 2nd board has gone over-heated. Therefore, there is a risk for a technical correction in the near future. Nonetheless, provided that the Stochastic is still above the 70% level, the short term market movement for the 2nd board index is still bullish biased. (Study C)

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