The market closed in the morning, with the three major indexes rising and falling. As of the morning closing, the Shanghai Composite Index fell slightly by 0.11%, the Shenzhen Component Index fell slightly by 0.23%, and the ChiNext Index fell 0.36%. As of the morning closing, 3,399 companies fell in the two markets and 1,786 companies rose. As of the morning's closing, the turnover volume of the three markets was 808.5 billion, a slight decrease of 30.2 billion from the previous trading day.
From the morning market trend, the market trend throughout the morning was very hesitant and entangled. The Shanghai Composite Index fluctuated only 0.26% throughout the morning. Of course, we can see that the volatility of the CSI 2000 Index, which represents the trend of small-cap stocks in the morning today, was slightly larger - the CSI 2000 Index's largest decline in the early trading once reached 0.73%. However, the decline has narrowed as of the morning closing, and it closed down 0.42% as of the morning closing. Then we also noticed that the trading volume of the market in the morning shrank compared with the previous trading day, and the trading volume of the two markets shrank by 32 billion compared with the previous trading day.
So what conclusions can we draw from the above characteristics? I think there are three conclusions that can be drawn more clearly.
First, one of the reasons why the market index fluctuated in a narrow range in the early trading session may be waiting for the news to become clearer.
Secondly, although the market is struggling, it makes people feel that the market trend is at risk of turning downward at any time, I personally believe that the market is still bullish at the moment.
Third, the Shanghai Stock Exchange Index currently has support for multiple moving averages and also supports three important trend lines or horizontal support lines. If the Shanghai Composite Index wants to fall below the current point, it is quite difficult to sell significantly. On the contrary, it is easier to go up.
Shanghai Index Daily Chart
And, if you observe carefully, we find that in the past 8 trading days, the center of gravity of the market k-line has generally been slowly moving upward. And this kind of slowly moving upward has had a classic trend in history. It was the soaring market in early July 2020. Before the market soared, the market was following this trend of slowly moving upward. The market trend at that time also conformed to the characteristics of the moving average bull arrangement.
Shanghai Index near June 30, 2020
As everyone knows, in early July 2020, the market's engine came from the securities sector. The strong pullback of the securities sector led to a soaring market in July 2020. As far as I observe, the current securities sector index is also in a state where it can pull up. So I think in this state, we might as well wait a little longer, the market may move out of an upward trend.
Of course, the above views only represent some of my personal superficial thoughts on the market. My views may not be correct. They are for everyone to discuss market trends only and do not represent any investment advice.
After talking to you at noon, I like it is the greatest support for me, a purely technical school.
