As indicated by A, the Bollinger Bands Width expanded another 6% on Tuesday with the 2nd board index remains below the Bollinger Middle Band. Although the 2nd board index ended 0.69 of a point higher, it is still considered a technical rebound. This is because the 2nd board index is still staying below the Bollinger Middle Band. Nevertheless, if the Bollinger Bands Width should remain expanding, the Bollinger Bands Width bearish signal shall remains intact. Nevertheless, 101.09 Fibonacci Retracement line is still the next support for the 2nd board index.

As clearly indicated by B, the volume for the 2nd board index remains below the 40-day VMA level. Meanwhile, the 40-day VMA level is also falling, suggesting that the overall participation of the 2nd board market is indeed low. Therefore, without sufficient inflow of fresh capital, the sentiment for the 2nd board market shall remains weak.

On Tuesday, the Stochastic %K line rebounded but remains below the 30% level, which is the short term bearish region. If the Stochastic should stay below the 30% level, the market movement for the short term shall remain bearish biased.

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