Likes ReceivedTrading volume shrinks, not enough for a rebound yet!!
$SentinelOne(S.US)hanghai Composite Index sh000001$ The performance of the three major stock indices today was quite different, with the Shanghai market being relatively weak, while the Shenzhen and ChiNext markets performed stronger. The ChiNext Index rebounded all the way up, but it is getting closer to its previous high. Whether it can continue to break through depends largely on whether the trading volume can keep up.
Today, the J indicator in the KDJ index showed divergence, which may indicate signs of a short-term adjustment. In other words, if the market performs strongly today, the ChiNext Index may continue to break upward; if not, the possibility of a pullback after a rise is relatively high.
As for the STAR 50, it is now facing resistance at the 30-day moving average, and overall, it is still in a stabilization phase. There has been no sign of recovery in the short term, and the trend of minor fluctuations is particularly obvious. As the market gradually warms up, the ChiNext and STAR indices should slowly recover. If the Shanghai Index falls significantly, these two indices may continue to face pressure.
Today, the brokerage sector experienced minor fluctuations, and the market sentiment in both exchanges still needs to improve. If brokerages can stabilize above the 10-day moving average, there is still hope for a rebound; otherwise, the pressure from the 30-day moving average remains, and the gap has not been filled. So, brokerages didn’t do much today. If the Shanghai Index wants to continue warming up, a rebound in brokerages is still crucial.
Today, there were clear signs of banks supporting the market, and the short-term market is still in the process of stabilizing. Although trading volume increased again today, there was still a significant outflow of funds. The current fluctuations are likely still part of a consolidation phase, and there might be another rebound in the afternoon.
In terms of sector performance, power, grid equipment, military industry, and precious metals performed relatively well, but overall sector performance in both exchanges was still weak. Sectors like technology, real estate concepts, and retail all saw some adjustments, clearly indicating a shift between high and low valuations. As the market continues to rotate, it remains in a weak adjustment phase. With the current trading volume, a recovery rebound is still not sufficient.
Currently, 3865 points can be considered a short-term support level. If the rebound continues, there is still hope of returning above 3900 points, but on the daily chart, the 5-day moving average still poses resistance. If it fails to stabilize above the 5-day moving average today, further adjustments may be needed.
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