6.25 Early Morning Silk Road

After the Nasdaq opened, the index faced pressure ↓ testing the support level at 104700, then rebounded to stabilize at 106100. Currently, both sides are in a stalemate, oscillating in the 105400-105800 range.

From a technical perspective, the hourly Bollinger Bands are converging upwards, with the bands narrowing to a 1000-point fluctuation range. Multiple retests of the middle band have encountered resistance, indicating that the market is building up momentum for a breakout. The MACD indicator shows the two lines moving parallel and downward below the zero axis, with green bars continuously and gently expanding, suggesting that the bulls temporarily have the upper hand, but no trend-based downward signal has been formed yet.

It is worth noting that the narrowing of the Bollinger Bands is often a precursor to a change in market conditions. If the index breaks below the lower band with increased volume, it may open up ↓ space; conversely, if it breaks above the upper band, it is expected to challenge the resistance level at 108000.

The index is expected to react around 106100-106800 while looking towards 104900-104200.

The secondary index is expected to react around 2470-2510 while looking towards 2390-2340.