Thursday's market action, a classic case of emotional collapse.

The main players' routine of first lifting then smashing has returned, with over 4,000 stocks drifting into the red. Toward the close, the crowd-pleasing stocks directly plunged, led downward by those big CPO stocks. Retail investors watching their accounts turn green are bound to feel anxious. This kind of panic selling often signals short-term repair potential.

Let's see how the night session played out: The three major US stock indices diverged — the Dow hit a new high, up over 1%; the Nasdaq dipped 0.25%; and the S&P rose 0.21%. In tech stocks, Google, Broadcom, Nvidia, and Tesla fell 1-2%, while Microsoft and Netflix gained more than 1%. After hours, tech stocks collectively turned red again. The A50 futures rose 0.53%, and the Hang Seng futures increased 0.85%. Overall, sentiment abroad isn't bad.

The commodities market is even more interesting — gold futures surged $80 per ounce, while oil futures dropped 1%. This recent gold rally suggests that the non-ferrous metals sector might benefit today. Chinese concept stocks mostly declined, with the Golden Dragon Index slightly down. Among them, Kingsoft Cloud, Xpeng, Alibaba, Li Auto, JD.com, and Pinduoduo led the declines, while NIO, Baidu, and Atlas Solar Energy defied the trend and rose.

There's also a small piece of gossip worth noting: It’s rumored that exchanges plan to phase out quantitative trading devices. Quant trading has squeezed retail investors quite hard over the years and has been influencing market rhythm — perhaps it’s time for regulation.

After hours, an important meeting set the tone for next year's economic direction, which is a tangible positive for the market. Yesterday, US futures dipped, causing the A-shares to panic, but they recovered quickly at the open. Today, external sentiment is warmer, and domestic policies are supportive, so the chance for a recovery rebound looks promising.

Looking at the data, Thursday’s sector long-short ratio shows some decline in bullish positions. The ChiNext Index remains above 1.5, indicating the market hasn't fully backed down.