--- title: "3900 points gained and lost! Market \"cannot be smashed down or penetrated\"? Institutions: control positions and wait for geopolitical events to clarify" type: "News" locale: "en" url: "https://longbridge.com/en/news/281869672.md" description: "After experiencing a pullback over two trading days, the market rebounded slightly, but the downside risk has not yet been eliminated. The Shanghai Composite Index faced selling pressure around the 3900-point mark, ultimately closing at 3890.16 points, with an increase of 0.26%. The trading volume shrank to 1.62 trillion yuan. The market is focused on the situation in the Middle East, and analysts suggest controlling positions and waiting for clarity on the events. In the short term, panic selling may release risks and create space for subsequent rebounds" datetime: "2026-04-07T10:53:44.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/281869672.md) - [en](https://longbridge.com/en/news/281869672.md) - [zh-HK](https://longbridge.com/zh-HK/news/281869672.md) --- # 3900 points gained and lost! Market "cannot be smashed down or penetrated"? Institutions: control positions and wait for geopolitical events to clarify **Internet News Information Service License Number: 51120180008** After a two-day pullback, the market welcomed a slight rebound, but the downside risk has not been completely eliminated. On April 7, the first trading day after the Qingming holiday, the Shanghai Composite Index opened slightly higher and experienced narrow fluctuations. After briefly standing above the 3900-point mark during the intraday rebound, it faced significant selling pressure, and after multiple unsuccessful attempts to break through, the gains began to narrow. The Shenzhen Component Index and the ChiNext Index showed similar trends throughout the day, with the morning rebound nearing the 5-day moving average before being blocked, ultimately closing with a doji star. ![Image](https://imageproxy.pbkrs.com/https://inews.gtimg.com/om_bt/OXfymOBvYCKRaBO1pv8V3LMaC5xpoRqgS_XDuZdgAGwnYAA/641?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Shanghai Composite Index Daily K-Line Chart By the close, the Shanghai Composite Index finished at 3890.16 points, up **0.26%**; the Shenzhen Component Index closed at 13400.41 points, up **0.36%**; the ChiNext Index ended at 3160.82 points, up **0.36%**. The trading volume in the Shanghai and Shenzhen stock markets further shrank to 1.62 trillion yuan, a decrease of **over 40 billion yuan** compared to the previous trading day. On the sector front, **chemical raw materials, rare earths, agricultural chemicals, and coal** sectors led the gains. In contrast, **engineering machinery, insurance, aviation equipment, and precious metals** sectors experienced counter-trend pullbacks. In terms of individual stocks, nearly 4000 stocks rose, with 101 stocks hitting the daily limit up, while over 1400 stocks declined. During the slight rebound of the market, the overall willingness of individual stocks to rebound was relatively strong. As the largest external variable currently, the evolution of the Middle East situation remains an important variable of market concern. Chen Yuheng, a senior investment advisor at Jufeng Investment Consulting, stated in an interview with a financial investment reporter: “In the short term, there is still a possibility of escalation in the conflict. If the U.S. takes further military action in the near future, the market may face a new round of emotional suppression, but the trend of easing in the medium term is relatively certain. If the short-term conflict really escalates again, the market may accelerate the completion of the final drop after short-term pressure, thus solidifying the phase market bottom. **Historical experience shows that when the most pessimistic geopolitical risks are concentrated and released, it often coincides with the formation of a bottom area.**” In the short term, controlling positions and waiting for clarity on events remains the best strategy. Wang Xiaoli, a securities analyst interviewed by a financial investment reporter, stated: “Panic selling often effectively releases short-term risks, opening up space for subsequent rebounds. However, the market is currently in a weak balance, with strong cautious sentiment among funds, which is also the reason for the continuous decrease in trading volume recently. In the short term, there is significant pressure above the index, and it is difficult to make progress in a low-volume environment. **It is expected that the future market trend will mainly focus on consolidating the bottom through fluctuations, and there is still a possibility of further downside.**” Chen Yuheng added: “After the previous adjustments, the market is gradually entering a balance zone between bulls and bears, with short selling pressure diminishing and buying strength gradually increasing, forming a pattern of ‘unable to be smashed down, unable to fall through.’ However, **due to the lack of a sustained leading sector, the rapid rotation of sectors has prevented the formation of a clear signal of strengthening.**” Huatai Securities believes that under the repeated fluctuations in the Middle East situation, the market continues to experience volatility. Currently, the odds for left-side positioning may gradually increase, but it is not advisable to make unilateral bets until the geopolitical situation in the Middle East becomes clearer. It is recommended to continue waiting for right-side signals. Investors are advised to control their positions and leave room, maintaining a certain level of defensive and low-correlation asset allocation in the short term. **| Financial Investment Reporter Lin Ke |** Editor| Wang Wei Chief Editor| Chen Yuhe Reviewer| Hou Gege Third Review| Zhang Jing ## Related News & Research - [The Trade Desk Stock Is Rising: Is This $3 Billion Ad Trend The Next Growth Catalyst?](https://longbridge.com/en/news/284601334.md) - [Warren Buffett's Coca-Cola Bet Just Got $3.4 Billion Sweeter](https://longbridge.com/en/news/284605291.md) - [Qualcomm quarterly forecast underwhelms, but CEO says worst of memory crunch over](https://longbridge.com/en/news/284633920.md) - [Palantir Has 'Golden Path' To Become Trillion-Dollar AI Giant, Dan Ives Says](https://longbridge.com/en/news/284629278.md) - [Nokia Stock Is Surging Today: What's Driving The Move?](https://longbridge.com/en/news/284620106.md)