The 2ndboard index ended lower on Thursday with a daily low touching at 111.68 points, closing 1.09 points lower at 113.45 points. As indicated by A, the 2ndboard index falls below the 14, 21, 31 EMA. If the 2ndboard index should continue staying below the 14, 21, 31 EMA, the EMA shall reverse its role as the dynamic resistance to the 2ndboard index; and the outlook for the 2ndboard index would turn bearish biased. (Study A)

Volume for the 2ndboard market declined another 27.8% on Thursday. As indicated by B, the volume for the 2ndboard market remains below the 40-day VMA level, suggesting a relatively lower market participation. If the volume should continue staying below the 40-day VMA level, the 2ndboard index is less likely to regain its strength. (Study B)

As circled at C, the Stochastic %K remains below the 30% level, which is the short term bearish region. If the Stochastic %D line should break below the 30% level, it would confirm the %K signal, and the market movement for the short term would be bearish biased. (Study C)

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