Likes ReceivedToday is likely to be dominated by narrow fluctuations
$SentinelOne(S.US)hanghai Composite Index sh000001$ Today, the three major stock indices generally showed a high-level volatile pattern. Although the ChiNext Index is above the moving average, it clearly shows signs of weakness. To continue strengthening, it must break through yesterday's high. In the morning session, it needs to withstand the previous selling pressure to sustain the rebound momentum; if it fails to break through, it is likely to continue testing upwards repeatedly in the short term, with a volatile consolidation trend inevitable.
The STAR 50 Index has risen above the 30-day moving average, which is a positive signal. However, it has now reached the upper edge of the box, and the pressure is obvious. In the short term, it is expected to continue fluctuating and digesting. Additionally, the 60-day moving average is still under pressure, but fortunately, the medium- to long-term trend has not changed recently, so there is no need to worry too much about a deviation in direction.
The brokerage sector rebounded slightly today but remains weak overall. Although there are scattered signs of recovery within the sector, the rebound momentum has clearly slowed down, and it is still hovering below the 30-day moving average, indicating limited upside for the rebound. It is worth noting that although the indices diverged today, the market showed a broad-based rally under sector rotation, indicating overall stability. The upward trend of the market in the short term remains unaffected. However, when testing the previous resistance level again, if there is not enough volume support, it is likely to continue fluctuating with reduced volume.
From a market sentiment perspective, more than 3,000 stocks rose today, and sector rotation continued uninterrupted. The commercial aerospace concept continued to strengthen, with noticeable divergence within the sector. Sectors such as defense, power, semiconductors, general equipment, and electronics performed relatively well, showing that the tech growth line is indeed gradually recovering. As the sector rotation gradually stabilizes, the indices will also stabilize, and a shift from weakness to strength in the future cannot be ruled out.
The A50 futures briefly dipped earlier, but the overall market showed strong resilience and did not follow with a significant decline. Instead, it rebounded slightly driven by brokerages. This also reflects some signs of stagnation in the current market. As long as the momentum can be maintained, the rebound can continue. However, small- and mid-cap stocks rebounded more noticeably today, while heavyweight sectors declined, highlighting the divergence between large and small caps.
Overall, there are signs of a market recovery, but it is likely to follow a pattern of rising and then falling. From the 60-minute chart of the market, the rebound is still supported by the trend, but short-term pressure from a double top is significant. If a shift from weakness to strength can be achieved smoothly, there is a good chance of breaking through the 3,936-point level, and the subsequent market trend will be more stable. However, the market is indeed under short-term pressure, and it is expected to remain above the 10-day moving average today. If the 10-day moving average is lost, it may further test the 20-day moving average, with 3,900 points being the key support level.
Hmm, so I think today's market is likely to remain in a narrow range of fluctuations.
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