On Thursday, the 2nd board index rebounded 0.7 of a point to close at 104.08 points. However, as indicated by A, the 2nd board index remains resisted by the falling 14, 21, 31 EMA, which is still serving as the dynamic resistance to the 2nd board index. Therefore, the outlook for the 2nd board index remains bearish biased.

As indicated by B, volume for the 2nd board market on Thursday remains below the 40-day VMA level. Again, this suggests that the market participation was indeed low, and therefore, without sufficient of inflow of fresh capital, the sentiment of the 2nd board market is likely to be weak.

As circled at C, the Stochastic is still staying above the 70% level, which is the short term bullish region. If the Stochastic should remains above the 70% level, the short term market movement is still at bullish biased. However, the Stochastic is only one of many Secondary Indicators, and therefore, whenever indicators give conflicts signals, it is always a better idea to refer back to the chart pattern or the primary indicators.

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