Likes ReceivedTesting before stabilizing!!
$SentinelOne(S.US)hanghai Composite Index sh000001$ Today's market looks like it's taking a "deep breath"—there's a rebound after hitting the bottom, but the momentum hasn't fully picked up yet. The three major stock indices diverged, with the ChiNext and Shenzhen Component Index showing more resilience, while the Shanghai Index seemed stuck in slow motion, spinning in place. The pattern of "Shanghai weak, Shenzhen strong" is quite clear.
Sector rotation is happening so fast to keep up with. Resource stocks like industrial metals and minor metals, paired with communications, precious metals, and power grid equipment, clearly show funds seeking "safe havens." As risk aversion heats up, the divergence becomes even more pronounced. The detail of a few billion in reduced trading volume is worth noting—it's not about how much money has left, but rather that everyone is on the sidelines, lacking the drive to push higher. The flavor of consolidation and adjustment is strong.
Even more interesting is the "high-low switch": small and mid-cap stocks are jumping around happily, while heavyweight stocks are taking a breather, splitting the market in two. This sense of fragmentation suggests that the divergence might persist for a while. The financial sector had a bit of a "hiccup" today, with brokerages touching the 5-day moving average before pulling back. Although the KDJ shows signs of a golden cross, banks suddenly plunged, adding difficulty for the market. The 3900-point hurdle will likely take a few more days to overcome.
But it's not all gloom—over 3,000 stocks rose, and sentiment has clearly warmed up a bit. Concepts like computing power leasing, nuclear power, and Huawei's HarmonyOS are starting to emerge, while robotics and laser industries are also gaining. The short-term momentum of multiple sectors blooming is a significant boost to market confidence.
As for what’s next—will it break through the 5-day moving average or continue to consolidate in a narrow range? Judging by the "posture" of several indices, the foundation of the upward trend remains intact, and there’s room for recovery. The 60-minute KDJ golden cross suggests strong short-term upside potential, but the 60-day moving average is a tough nut to crack. The 3888-point level is key: breaking through it opens the door to testing round-number resistance, while failing could lead to another "rally and retreat" scenario.
Overall, today feels more like a "test before stabilization," with the medium- to long-term trend still intact. Support at the bottom looks solid, and the 3860-point level will likely hold. Now, we’re waiting for one signal: whether trading volume can expand gently. Only if funds are willing to come in can a reversal happen; if volume keeps shrinking, the market might stay stuck for a few more days. What the market lacks now isn’t opportunity—it’s a little bit of "daring to charge forward" courage.
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