The 2ndboard index opened with a gap up, touching the daily high at 108.63 points. As shown on the chart above, the 2ndboard index tested the 108.75 resistance while still resisted by the 108.75 points. Therefore, this suggests that there are still some selling pressure at that level. Nevertheless, as indicated by A, the 14, 21, 31 EMA is serving as the dynamic support to the 2ndboard index. Provided that the 2ndboard index can stay above the 14, 21, 31 EMA dynamic support, the uptrend of the 2ndboard index is likely to continue.

Volume for the 2ndboard market also increased significantly and broke above the 40-day VMA level. This suggests that the market sentiment and participation has improved, and as long as the volume can stay above the 40-day VMA level, the uptrend for the 2ndboard index is likely to sustain.

Despite the bullish movement of the 2nd board index, the Stochastic is still showing an over-bought signal with the Stochastic line touching at 100% level. Therefore, if the Stochastic should fall below the 90% level, it would be the signal of the short term technical correction. Nonetheless, provided that the Stochastic can remain above the 70% level after the correction, the market movement for the short term remains bullish biased.

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