Bottoming out and rebounding, with broad-based gains on heavy volume!!

$SentinelOne(S.US)hanghai Composite Index sh000001$ Today, A-shares "bottomed out and rebounded" with increased trading volume. In the morning session, due to the decline in the three major financial sectors, the Shanghai Index also fell all the way to 3,850 points. At this moment, mysterious funds urgently entered the market to stabilize it, quickly making up for the losses and even turning positive. By the afternoon session, the bulls were in full force, pulling another strong wave, pushing the Shanghai Index directly to 3,891 points. However, selling pressure emerged in the late session, narrowing the gains, and the market finally closed with a broad-based rally on higher volume.

Speaking of today's market performance, it was entirely driven by financial stocks, indicating the presence of massive funds behind the scenes. They first used the decline in financial stocks to scare out floating chips, then relied on the rally in financial stocks to attract bottom-fishing funds, achieving their goal of "buying low and selling high."

Below is an analysis based on today's actual market conditions:

1. The market bottomed out and rebounded, possibly signaling a reversal.
In the morning session, the Shanghai Index opened slightly lower and continued to decline. This drop surely prompted many risk-averse investors to sell their holdings. When the index fell to 3,850 points, mysterious funds appeared, gradually repairing the losses while trading volume slowly expanded—clearly a sign of bottom-fishing funds entering the market.

2. Trading volume surged significantly, exceeding two trillion (2.2351 trillion).
From today's market performance, the increased volume in A-shares was mainly driven by three forces: some were chips sold for risk aversion, some were funds entering to bottom-fish at the right time, and others were funds rushing in to chase the rally.

3. Thematic stocks rose first and then fell, with mixed performance among individual stocks.
From the opening to now, small and mid-cap thematic stocks initially performed quite strongly. Even as the broader market fell, sentiment for individual stocks remained good. But when the market suddenly rallied, the momentum of thematic stocks gradually cooled, and their gains shrank. Overall, thematic stocks still maintained a rebound trend.

4. Mysterious funds stepped in to lift the market, possibly due to anticipated positive news.
Looking back at last Friday's market, insurance and securities sectors rallied in the late session, accompanied by increased volume. Over the weekend, the CSRC and the Financial Regulatory Bureau released positive news, likely leaked in advance, prompting massive funds to quietly accumulate positions.

In my opinion, barring any surprises, next week's A-share market will likely "rise first and then fall." Early next week, the market may continue to rise slightly following today's volume-backed rebound, but it will only be a minor rally. Soon, it will face resistance from the moving averages above, and once pressured, the bears will counterattack, leading to another round of adjustments and a C-wave decline to find new support levels.