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Today, the A-shares market is about to open. Based on last night's US stock performance and technical analysis, this day could be quite critical.
All three major US stock indices rose collectively, with the Dow Jones even hitting a new all-time high. However, the Nasdaq's performance is interesting — last night, it formed an NR7 narrow-range consolidation pattern and is currently at a critical point at the top of a triangle. In the short term, the possibility of a downward breakout for the Nasdaq is higher.
On the A-shares side, yesterday closed at 4023 points. This morning, it is highly likely that the market will attempt to break through the previous high of 4034. But there's a detail to watch out for — when the main forces break through 4034, they may have already completed their phased tasks, so there is a significant risk of a pullback after a spike.
From a trading volume perspective, yesterday's increase was indeed extraordinary, with the combined trading volume of the three markets exceeding 500 billion yuan. Such a large increase in volume supported that big bullish candle, but the problem is — buying pressure may have already been concentrated. This means that the subsequent buying momentum today may struggle to keep up.
If the index undergoes a correction, a key support level from a technical perspective would be around 3936 points, the neckline of a small double bottom on the daily chart.
On a side note, the sectors that performed strongly last night in the US stock market include LiDAR, nuclear power, drones, gold and silver, non-ferrous metals, and rare metals. In comparison, for very short-term trading today, the power grid equipment sector might have some opportunities.