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The Shanghai Composite Index rebounded strongly, and the "bull market returned"...
Today's Shanghai Composite Index rose sharply, setting off a new wave of enthusiasm in the market. From a technical point of view, this rally has shown strong signs of recovery, especially the recent rebound of the Shanghai Composite Index, rising all the way from 2923 points, forming a V-shaped reversal trend, indicating that the market's upward trend is expected to continue. Today's sharp rise in the ChiNext index is even more exciting, with a white candle almost engulfing the downward trend of the previous days, which means that the ChiNext has entered an upward channel at the bottom of the market.
This strong rally is not only a turnaround in market sentiment, but also contains several important messages. First, a series of recent positive news has had a positive impact. Huijin's aggressive purchases of bank stocks and ETFs have boosted market sentiment. Although Huijin's move was only reported for one day, the CSI 300 ETF saw large net inflows for four consecutive days, indicating that Huijin is still actively protecting the market, which helped to warm up market sentiment. As long as Huijin continues to increase its holdings, the market will be guided by the weighted sectors to promote the gradual emergence of small and mid-cap stocks, and the upward momentum of the three major indices will continue.
Secondly, northbound funds have returned to the A-share market again, and domestic capital has also seen a net inflow, which has brought incremental funds to the market. Today, the turnover of the Shanghai and Shenzhen stock markets exceeded 100 billion yuan, the net inflow of northbound funds exceeded 4.5 billion yuan, and the net inflow of domestic capital also exceeded 4.5 billion yuan. Institutions are generally optimistic about this position in the market, which has driven the market up, and the number of daily limit stocks is as high as 80, and the market sentiment has changed significantly, and it is no longer too disturbed by external factors such as US stocks.
Third, listed companies are actively promoting share repurchase plans, and the performance-driven market is also coming. Recently, the news of the repurchase announcement of "Ningwang" and Gree Electric Appliances has been warmly welcomed by the market. This is because industry leaders are starting to launch buybacks, showing that the share price of core assets is undervalued, which will attract more money to focus on core assets. Based on these three aspects of information, it can be predicted that the market will usher in a new round of gains next week, which is expected to fill the gap of 3050 points in the Shanghai Composite Index.
The author has predicted the arrival of this round of rebound in recent analysis, and the market is expected to usher in more opportunities with the continuous introduction of favorable market policies. However, it should be noted that the upward momentum this time may not be as strong as it is today, as there are still quite a few lock-ups in the market that need to be resolved, and the upward momentum may be relatively slow. However, with the weakening of bearish events and the change in the attitude of northbound funds, the probability of further rise in the Shanghai Composite Index in the future is higher.
In summary, today's strong rally in the market is mainly due to the improvement in news, policy and sentiment, which has driven the index further higher. At present, many factors in the market have boosted the rise of the stock market, especially the over-falling rebound of the three major indexes and the positive factors on the news side, which are expected to usher in a good market that exceeds expectations. However, it should be emphasized that it is still in the process of rebounding, and the market trend is not yet fully clear, so it is necessary to pay close attention to the development of the market outlook. Let's hope that this round of market will bring more positive changes to the A-share market and provide more opportunities for investors. I hope that investors can get rich returns in this market and share the dividends of the market. If you liked this article, please like, share, comment and follow, the investment analysis is for reference only!