The 2ndboard index continued its upward movement on Monday, closing 1.38 of a point higher to 111.53 points. As indicated by A, the 14, 21, 21 EMA remains rising while continue serving as the dynamic support to the 2ndboard index. (Study A)

Temporary, there is no visible resistance for the 2ndboard index, and the next major resistance level for the 2ndboard index would be at the 115.37 points WinChart Automatic Fibonacci Retracement.

Volume for the 2ndboard market remains above the 40-day VMA level, suggesting that the market participation for the 2ndboard market is still relatively active, and therefore, provided that the 2ndboard is actively participated, the bullish sentiment is likely to sustain. (Study B)

As circled at C, both the %D and %K lines are now above the 90% level, which is the short term over bought region. This suggests that the short term movement for the 2nd board index was indeed bullish, but however, has gone over-heated. Therefore, there is a risk of a technical correction. Nevertheless, if the Stochastic should remains above the 70% level after a possible technical correction, the market movement for the short term is still bullish biased. (Study C)

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