There are a few market phenomena worth discussing before today’s opening.

Last night’s US stock performance was quite interesting — the Dow Jones soared 1.34%, while the Nasdaq slightly fell by 0.25%. After reviewing the market, almost all traditional sectors exploded: non-ferrous metals like aluminum and copper, precious metals gold and silver, as well as lidar, satellite communications, and even coal and photovoltaics all surged strongly. In contrast, tech stocks collectively underperformed. Does this signal a style shift? I personally lean towards the US stocks entering a phase of adjustment.

Looking at the A-shares yesterday, the intraday chart showed a consistent decline from morning to close, with trading volume increasing during the drop. The Shanghai Composite Index was even more aggressive, breaking through all short- and medium-term moving averages, and failing to hold the support of the recent low points on the daily chart. Technically, this pattern is starting to resemble a head and shoulders top.

If today’s traditional sectors can move in tandem with US stocks, the Shanghai index might bounce short-term. But the key depends on the strength of the rebound — whether the momentum is sufficient and if trading volume can keep up. If not, this head and shoulders top might truly become a trap. As for what a head and shoulders top looks like, those familiar with technical patterns should know.

In the short term, AI-related tech sectors are likely to remain not very optimistic, and may need more time to consolidate.

Looking ahead, the A-shares market is probably heading into a phase of oscillation and correction. Market sentiment is still there, sector rotations are brewing, and the next move depends on closely monitoring volume, price action, and capital flow.