The waters of the stock market are too deep, and it's bottomless! Frequent enticements to buy and then the cutting of retail investors' positions occur, and today another batch of retail investors got successfully trapped. Small and medium investors are really struggling, losing so much that they're left with just their underwear, truly a tragedy!

Recently, the A-share market has been frequently staging fake rallies to lure buyers, only to be followed by a bearish counterattack and a plunge in prices. Today was no exception, with a rally followed by a plunge, directly breaking through the 3100 point mark, allowing those who chased the rally to successfully take the bait. If this continues, even the roots of the "leeks" (a metaphor for retail investors) will be uprooted. What exactly caused the A-share market to plunge today? Who is selling off? The following observations from the market reveal that it is due to the following factors suppressing the A-share market's plunge.

Factor One: The continuous selling of selling pressure within the market, where every slight increase is met with selling pressure from above. As long as these selling pressure chips concentrate on escaping, they will inevitably bring the market down. During the rise, the market relies on the volume reduction of heavyweight stocks to lift, but when it falls, it brings volume with it, plunging. This characteristic is enough to show that the selling pressure is the main culprit of the market sell-off.

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Factor Two: The collective downturn of heavyweight stocks, especially cyclical stocks, which have become the strongest sellers in today's A-share plunge. Among them, the cyclical sectors such as non-ferrous metals, real estate, and oil saw increased volume declines, coupled with the financial sector's three major sectors' rise and fall, especially insurance and banks turning their faces faster than flipping a book. Of course, the securities sector also saw a gloomy decline, with cyclical and financial sectors jointly selling off against today's A-shares.

Factor Three: The main capital or northbound capital appears to be fleeing. Both types of capital have a huge impact on the trend of A-shares, especially the main capital that is desperately selling off. Today, the main capital sold off more than 20 billion, becoming the strongest bear in A-shares. In addition, it is also possible that northbound capital is fleeing. The flight of these two types of capital has led to multiple plunges in today's A-shares.

Factor Four: Profit-taking from short-selling funds, and of course, it is also possible that pessimistic funds are selling off and dragging down the market. A-shares have always harbored a strong force of profit-taking from short-selling, and the most troublesome is the quantitative funds, which first go long and then turn around and go short. If this fund is not restricted, it will inevitably become a hidden danger for A-shares.

Therefore, the internal cause of today's plunge in A-shares is the massive capital flight, the real sellers are the surge of selling pressure, the decline of heavyweight stocks, the escape of main capital, and the combined selling off by short-selling forces.

Will A-shares accelerate the decline tomorrow?

After today's A-shares plunged through the 3100 point mark again, the pessimistic sentiment and selling pressure within the market have been upgraded again, which is indeed unfavorable for the trend of A-shares tomorrow and will inevitably lead to an accelerated decline in A-shares.

It is predicted that A-shares will still decline tomorrow, whether it will be an accelerated plunge or a fluctuating decline depends on the outcome of the tug-of-war between bulls and bears. If it holds the annual line and fluctuates downward, it will accelerate the decline if it cannot hold the annual line. The difference lies in how A-shares will decline tomorrow.The viewpoint is quite clear, with a bearish outlook on the trend of A-shares for tomorrow. Whether it will be a rapid decline or a fluctuating one, the key lies in the following two points.

Firstly: Tomorrow, A-shares will engage in a battle for the annual line, once again becoming a pivotal position for the tug-of-war between bulls and bears. If the bears prevail and the annual line is breached, a wave of panic selling will ensue, with many funds fleeing and triggering a panic sell-off. On the contrary, if the line holds, it will stabilize the market, leading to a slow and steady decline akin to boiling a frog in lukewarm water.

Secondly: Based on the current environment, position, capital, and popularity of A-shares, the short-term trend is indeed very poor, with no impetus for an upward movement. Since A-shares are not expected to rise in the short term, a bearish view is inevitable. No rise means a fall, which is a law of nature.

It is observed that today, A-shares have successively dived below 3100 points, ultimately due to the exodus of ultra-large capital and short-selling funds driving down the market. Following another dive, the outlook for tomorrow, which is Friday, is very unfavorable, with concerns that A-shares may lose the support of the annual line and enter a phase of accelerated decline.

Should A-shares indeed experience an accelerated decline tomorrow, the short-term risks will increase. At such times, it is crucial to reduce positions and manage risks to avoid the hazards brought on by market adjustments. Sometimes, not losing money is the mark of a winner.