Which index should we focus on tomorrow? Although the main index has been rising for several days, to be honest, there's not much to see - it might be better to shift our focus to the ChiNext.

The strategy of the ChiNext has been analyzed before: it revolves around the ten-day moving average for pullbacks. Today it has reached a short-term peak, and the ChiNext is basically set to pull back over the next few days. Pushing the entire A-share market upward from the ChiNext means that two bearish candles are needed for digestion. One has been completed today, and it is very likely that there will be another one tomorrow (a false bullish candle also counts).

But there is a problem here – judging the profit effect solely based on the performance of all A shares is basically just a guess in such a fragmented market. It needs to be complemented with the emotional aspect.

Today, once the popular sectors corrected, people's confidence scattered. Short-term funds (which we call "Little Deng" )) are inherently liquid. As long as they are willing to keep buying in waves, the profit effect can materialize. The problem is that many short-term funds have already been trapped today, with losses of more than ten points on the table. Once there is a slight rebound tomorrow, this group of people will panic and flee, which will inevitably turn into a situation of more selling leading to more selling. Therefore, we shouldn't be too optimistic about the profit effect tomorrow.

Switch to the mid-line investors (let's call them "Old Deng" ), these people are tough and resilient, able to withstand and fight. Since they can endure, let's hold on a little longer and get through this consolidation period.