Home » The Shanghai Stock Index fell below 3,000 points and the “seesaw effect” reappeared

The Shanghai Stock Index fell below 3,000 points and the “seesaw effect” reappeared

by admin
The Shanghai Stock Index fell below 3,000 points and the “seesaw effect” reappeared

Market Seesaw Effect: Shanghai Composite Index Falls, BSE 50 Index Rises Sharply

After a sustained shock correction, the market began to accelerate its bottoming, with the Shanghai Composite Index falling below 3,000 points again. However, unexpectedly, the BSE 50 Index rose sharply during the session, and the “seesaw effect” of the A-share market reappeared.

Although the market correction is accelerating, the industry is not pessimistic about the market outlook. In the short term, there is not much room for the market to go down, and volatility may be the main tone.

With the rapid downward movement of the short-term moving average, the Shanghai and Shenzhen stock markets began to accelerate their decline. The Shanghai Composite Index opened lower and moved lower on Tuesday, with a relatively stable trend in early trading. As the selling pressure intensified after 2 p.m., the index plunged rapidly, and finally closed at the lowest point of the day, breaking through the 3,000-point integer mark. The full-day trend of the Shenzhen Component Index was similar to that of the Shanghai Index, with a slightly higher decline than the Shanghai Index. As of the close, the Shanghai Composite Index closed at 2972.3 points, down 1.67%; the Shenzhen Component Index closed at 9470.36 points, down 1.97%; the GEM Index closed at 1871.1 points, down 1.98%. The trading volume of the two cities shrank slightly, with a net outflow of 4.894 billion yuan for Shanghai Stock Connect, a net outflow of 2.627 billion yuan for Shenzhen Stock Connect, and a total net outflow of northbound funds of 7.521 billion yuan.

Jufeng Finance pointed out that the three major indexes fell across the board, market sentiment became cautious, and defensive sentiment increased during the session. There is an obvious “seesaw effect” between the main board market and the Beijing Stock Exchange market, and the market differentiation is obvious.

See also  US banks, Yellen convenes an extraordinary meeting of the FSOC

On the market, a few sectors such as prepared vegetables, seed industry, aquatic products, and vitamins bucked the trend and rebounded. Computing power, information security, Internet, software services and other sectors were at the forefront of the decline list, with sector declines of more than 3%. As the market accelerated its adjustment, individual stocks experienced general declines. In terms of price limits, a total of 52 stocks in the two cities had their daily limits, and only 2 stocks had their daily limits.

The A-share market is currently in the final stage of adjustment, and the space for the index to continue to decline is very limited. Investors should not be blindly pessimistic in the short term.

Institutions are not pessimistic about the mid- to long-term market situation, but in the short term, the market may relapse after a rapid decline. Jufeng Finance said that the market has continued to fall recently, and the Shanghai Composite Index has continued to test the 3,000-point mark, and the probability of a technical support platform is relatively high. Judging from the recent warming performance of the Shanghai Composite Index, it has always adjusted above 3,000 points, while the price broke down during the session on Tuesday, indicating that the market’s downward momentum has increased. The differentiation of sectors and the confusion of hot spots during the session highlighted the market’s wait-and-see and defensive mood.

Analysis by Yuanda Investment Consulting pointed out that the market continued to fall after a wide range of consolidation on Tuesday, and trading volume increased significantly in late trading, indicating that financial panic has increased. However, the repeated consolidation in the early stage showed a weak balance between bulls and bears, and the current direction choice does not rule out the emergence of a pattern of neither breaking nor establishing. It’s just that the market fell below 3,000 points again in the short term, and there was a downward gap left above. The characteristics of a second bottom are very obvious. The GEM index is still under pressure from the 5-day moving average.

See also  Huawei Mall App Tops Apple App Store as iPhone Users Rush to Buy Mate 60 Pro and Mate 60

In terms of operating strategies, market sentiment dropped to freezing point on Tuesday, individual stocks also showed a general decline pattern, and the difficulty of market operations increased again. The current market still lacks confidence, so funds are concentrated in defensive varieties. In view of the unstable market sentiment, it is recommended to watch more and move less, and remain patient and wait for the decline to stop and stabilize before making a decision. However, there is no need to be overly pessimistic at this position. After all, judging from the historical trend, after the second bottom, the foundation for the market outlook will be more solid.

Securities Times strives to provide true and accurate information. The content mentioned in the article is for reference only and does not constitute substantive investment advice. Any operations based on this are at your own risk. Stay updated on the stock market trends by downloading the official APP of “Securities Times” or following the official WeChat account.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy