On Monday, the 2nd board index returned to the congestion zone of the 14, 21, 31 EMA. However, as indicated by A, the 2nd board index managed to be supported by the 105 support level. Nevertheless, the Bollinger Bands Width remains contracting, suggesting that the 2nd board index is still consolidating, or gearing up for a next movement.

Volume for the 2nd board market declined 54.4% on Monday, while staying way below the 40-day VMA level. Therefore, this really shows that the market participation is indeed very low, and the market sentiment is likely to stay weak.

As circled at C, the MACD histogram ticked lower and formed a rounding top signal. The rounding top signal suggests a weakening MACD bullish signal, and thus suggests a short term consolidation. Nevertheless, the MACD line is still staying below the zero-line, which means that the long term movement for the 2nd board index is still bearish biased.

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