The Shanghai and Shenzhen indices were stimulated by the unexpected growth of social financing in the first quarter, and then the two indices all the way down. From the perspective of Volume-Price relationship and morphology, the fall of the Shanghai Index today is the top of 3288 points, and it also confirms that today’s high is the sub-high, and there will be a period of adjustment in the future.
Insurance, banking and other major financial sectors rose in the morning and then narrowed their gains in the afternoon. Without the hedging of the rise of major financial sectors, today’s decline in the index would be ugly. If there is no good weekend stimulus, the adjustment of the Shanghai Stock Index today may be in place step by step, and the good weekend will add more uncertainty to the future trend.
The short-term support of the Shanghai Index focuses on 3150 points (near the 20-day average) and 3200 points (near the 10-day average), and the market is expected to continue to test the 20-day and 30-day average. If the Shanghai Stock Index can make a stop-fall and rebound above the 30-day average, the short-term entry position will come out.
As the saying goes: the rising stage ignores the negative, the falling stage ignores the positive. Judging from the good weekend results and the decline today, the index is in the downward phase. Simple good is not enough to stimulate the index upward, only when the time, space, structure and other conditions are satisfied, good is good, bad is bad.
In the early stage of the decline, the K-line characteristic of the sub-high point is that the volume rushes back. If this happens at 2440, or even 2600, it will push the index up. From a trend point of view, once the market has formed a certain trend, it will continue to run along the direction of the trend, and no force can stop it. Since 2440, the current round of market has been consolidated for 23 trading days in the 2950-3100 trading range, greatly slowing down the Shanghai Index’s rise, and then began to rebound. So far, the Shanghai Index has consolidated again at 3288, and the rising rate has declined again. Looking from today’s market, there are no other hot spots in the market except the insurance and banks held by the institutions.