A-share market continued its downward trend today, fighting to defend the 3100-point level. Initially, there was a slight lift to lure buyers, followed by a retreat. The market experienced multiple plunges, especially towards the end of the session, with increasing bearish strength intensifying the downward momentum. The Shanghai Composite Index directly broke through the 3100-point mark, leading to a surge of panic selling and further increasing investors' losses.

In fact, today's continuation of the downtrend in A-shares was within the realm of expectations. After the significant drop yesterday, it was akin to dousing the current A-share market with cold water, bringing numerous unfavorable elements to today's performance, thus leading to the extension of the downtrend and the loss of the 3100-point level. Of course, several factors may have contributed to this, including:

Factor One: The A-share market seems to be signaling the end of a phase of rising trends. The trend of the Shanghai Composite Index has started to gradually weaken, and after two days of decline, it has broken through several short-term moving averages. The market is now facing the critical 3100-point threshold. If this level is breached, it will inevitably lead to more capital flight, making it difficult for the A-share market to avoid adjustment.

Factor Two: The continuous increase in selling pressure within the market and the gradual rise in pessimistic sentiment have put pressure on today's A-shares, continuing the downtrend from yesterday. If the A-share market does not improve the selling pressure and eliminate pessimistic sentiment in the short term, a downward trend will gradually form, opening up the space for further correction in the A-share market.

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Factor Three: The trading volume in the Shanghai and Shenzhen markets has shrunk, and the main force of capital is desperately fleeing, while outside funds are reluctant to enter. This leaves today's A-shares without the support of outside capital. Even a slight selling pressure can suppress the market, with the greatest pressure coming from the main force of capital. The inability of A-shares to rise is directly related to the main force of capital.

Factor Four: The continued decline of A-shares today was also due to the pressure from the heavyweight sectors. The real estate sector saw a significant volume drop, insurance stocks opened low and continued to decline, and the liquor and securities sectors were also fluctuating downward. Apart from the support from the power, oil, and non-ferrous metal sectors, the rest of the heavyweight stocks were mainly falling, which is the main reason for the continued decline of A-shares today.

Where will the market go on Monday next week?

Now that the A-share market has already lost the 3100-point level today, the bearish force is increasing. However, after two consecutive days of decline, there is a demand for the bulls to defend the market. It is inferred that on Monday next week, the market will retreat to defend the 3100-point level.

It is predicted that on Monday next week, A-shares will open with a slight increase or decrease, and then enter a structural trend. Heavyweight stocks will continue to put pressure on the market index, controlling the market to fluctuate around the 3100-point level. Sectors and individual stocks will enter a phase of differentiation, with the strong ones fluctuating upward and the weak ones either staying flat or sliding down. Overall, on Monday next week, the market is expected to continue its narrow range fluctuation.

This implies that on Monday next week, the market will continue to be volatile, with bulls and bears engaging in another round of competition. The direction chosen by the bulls and bears will determine the trend of the A-share market for the following week.First: As the A-share market is currently in a special period of potential trend change, bulls and bears will engage in a tug-of-war to choose a direction. If the market chooses to move downward, it will enter a bearish correction; if it counterattacks, there could be new highs. The market will inevitably face a direction choice on next Monday, and it will operate in a volatile pattern until the direction becomes clear.

Second: The 3100-point level on the Shanghai Composite Index is crucial for the current A-share market. Bulls do not want to easily relinquish this level, and bears are also hesitant to blindly sell off. Today's intraday breach of this threshold is merely a probing move by both sides, and the tug-of-war over this level will continue until next Monday. Let's wait and see.

In summary, the continuation of the A-share market's decline today, with the intraday breach of the 3100-point level, is directly related to the main force capital, market selling pressure, investor sentiment, and the performance of the heavyweight sectors, which have severely dragged down the A-share market today. After two consecutive days of decline, the outlook for the market's trend on next Monday is very unfavorable, and the market sentiment for next Monday is pessimistic.

The breach of the 3100-point level is very unfavorable for the bulls, while it is more advantageous for the bears. External funds are hesitant to enter, and internal selling pressure is fleeing. If this continues and the market support funds do not come out, the trend of the A-share market will become even more challenging.