This week's stock market, can be described as a terrible market, the three major indexes of A-shares fell consistently, especially in the last trading day, the three major indexes of A-shares seem to have an accelerated downward trend, the overall market sentiment is relatively pessimistic, the atmosphere of bears is very strong, the A-share market has indeed run to a key position.
It can be seen that this week, the Shanghai Composite Index fell by a total of 2.69% to close at 2765 points, and this week, the ChiNext Index fell by a total of 2.68% to close at 1538 points, and the Shenzhen Component Index fell by 2.61% on Monday to close at 8130 points.
The three major A-share indexes are all in a state of decline this week, especially the Shanghai Composite Index, which closed out an obvious mid-yin line this week, and it is still in the weekly trend to close out this pattern, which is not small, why?
Because, in the past few weeks, the weekly trend of the Shanghai Composite Index has only closed out of the state of small yin and small yang, and this week's decline has directly made the trend very ugly.
What's more, suddenly, two signals landed, and these two signals will have a certain negative impact on the next A-share market, so does this mean that the stock market is going to wind next week?
The first signal can be seen that the European and American stock markets have begun to fall collectively again, and the indices of the European stock market are basically falling, and after the US stock market opened, the decline is not small, of which the Nasdaq index has fallen by 2.55%.
What does this mean for A-shares?
This means that A-shares are likely to be affected by the linkage next week, A-shares have always been down rather than up, and they are still in the case of such a big decline in U.S. stocks, then, next week, the situation in the Asia-Pacific stock market is estimated to be not optimistic.
However, in fact, in the author's opinion, perhaps for A-shares, at the time of the opening, there is indeed an impact, and this impact is only limited to the opening of the market, because, in the past, when the US stock market fell sharply, there was often a phenomenon of A-shares opening low and going high.
Therefore, it is right to maintain a certain amount of concern, and there is no need to be too pessimistic.
To put it bluntly, now the Shanghai Composite Index has fallen to the position of 2765 points, which cannot be said to be very low, but now the dynamic P/E ratio of the Shanghai Composite Index is only 12 times, which is already near the historical bottom.
More importantly, previously, the valuation of the banking sector was very low, and after this year's rise, the overall valuation of the banking sector has also risen.
The second signal, now the market is basically no volume, the previous volume, but, it is just a trading day volume, and then it began to shrink again, in fact, the single volume is insignificant, the important thing in the market is the volume.
Now the Shanghai and Shenzhen stock markets are basically more than 500 billion turnover every day, such a sluggish trading volume, indicating that the entire market is in a very low atmosphere, such a situation, how can we brew a repair market?
Therefore, in the author's opinion, based on these two signals, the stock market is expected to be sluggish next week, especially this negative line on the weekly trend, which has broken the original calm situation, which is also what the author is worried about.
To sum up, now, we still have to be cautious, not too blind, the overall risk of the market is still too strong, the bottom has not stabilized, and it is still hitting a stage low, and even a normal sideways trend has not yet appeared, so the variables still exist.
The stock market is also likely to be windy next week.