Likes ReceivedThe market is rebounding upwards
$SentinelOne(S.US)hanghai Composite Index sh000001$ This morning, the three major stock indices collectively closed higher, but the Shanghai market was relatively weaker, while the Shenzhen market and the ChiNext board performed stronger, especially the ChiNext Index, which successfully stood above the 20-day moving average. However, in the short term, it will face pressure near the 10-day and 60-day moving averages.
As for the current market situation, the ChiNext board has largely recovered. If it can continue to break upward, the short-term market is likely to keep warming up, and in that case, the Shanghai Index will also gradually strengthen.
The STAR 50 Index halted its decline today and began to rebound, showing a slight fluctuation trend in the short term. The J indicator in the KDJ indicator is diverging quite obviously, so the STAR 50 Index still has the potential to continue rebounding in the short term. Given this situation, the market may reverse soon, and the Shanghai Index is expected to continue its upward recovery.
The brokerage sector fluctuated today, suppressed by the 20-day moving average in the short term, and remains in a weak adjustment phase.
Today's trading volume continued to shrink, and it still hasn't shown a trend of increasing volume. If the volume can increase, the brokerage sector might gain short-term support, and the broader market would follow with an upward rebound.
Therefore, the brokerage sector needs to form a unified force to drive the index higher. Otherwise, if it remains in a weak adjustment phase, the broader market can only continue to fluctuate.
Although the banking sector is only fluctuating slightly, there are signs of recovery overall, which suggests that the financial sector may exert strength to further warm up the market.
From a market sentiment perspective, over 1,000 stocks rose in the two markets today, and the ratio of limit-ups to limit-downs is balanced, indicating that the market is still weak. Although there are signs of recovery in the two markets, differentiation has emerged between sectors.
High-priced stocks are now receding, and market differentiation is becoming more pronounced. In the short term, as small and mid-cap stocks weaken, the market may continue to adjust.
Sectors performing relatively well now include energy metals, minor metals, precious metals, non-ferrous metals, and food and beverages, among others. This shows that the market is still in a cyclical rotation, with short-term strength in the lithium battery and liquid cooling sectors.
From this perspective, the market may continue to fluctuate upward in the short term due to differentiation.
From the 60-minute K-line chart, the market has shown signs of bottoming out and rebounding, and it has now stood above the 5-day moving average. This means that as the market develops, it is likely to continue rebounding upward, reaching the 20-day moving average, which is near 3,850 points.
Therefore, once the market stabilizes at 3,850 points, it will continue to recover upward. Otherwise, it will remain in a low-volume fluctuation phase in the short term. The current support level is around 3,815 points.
Overall, the market is currently in a state of upward recovery and rebound.
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