Hexun Investment Advisor Wang Jigang: A pullback is just a buildup; only with high volume can there be genuine rotation.

Today, the three major indices again experienced a collective pullback, with declines still significant—each dropping more than 1%. Essentially, how they rose yesterday is how they fell today, indicating high volatility. During trading, the Shanghai Composite Index even briefly filled the gap at 3881. Indeed, the old tradition of A-shares filling gaps remains strong. Since the downward gap has been filled, will the gap at 3955 also be filled? According to Wang Jigang, a Huaxun investment advisor, the probability still seems quite high. However, I think it might be difficult in the next couple of days because there’s almost no volume. Today, the total market turnover didn’t even reach 20 trillion yuan. Simply put, there’s no new money coming in, and trapped investors are reluctant to move. To break this situation, we need positive catalysts to stimulate new volume, which is essential.

From a technical perspective, at this level, will the Shanghai Index test lower again to form a double bottom? I think that’s possible. However, the bottom on the right side should be higher, meaning it’s unlikely to test the 3800 point level. I believe this level will serve as a consolidation zone and then recover upward. But until the external situation clarifies, it’s best to control positions, watch more, and act less. Regarding sectors, today’s market still rotated. The recent leaders—electric power, communications equipment—mostly saw adjustments. Today, sectors like batteries, oil, and small metals took the lead again. Such rotation is normal in a low-volume environment, but it’s important to identify the main theme driving the rotation. Currently, the trend in electric power and computing power sectors likely hasn’t ended; a pullback could still be considered for a trading band.