Recently, many investors have doubts about the market trend, especially regarding the possible rebound next week and the strategy for heavy position layout on Sunday. Let's analyze the underlying logic and market signals in depth.

Firstly, the latest PCE data shows that the inflation rate is 2.9%, which meets expectations. This is not just about hitting the target; more importantly, it indicates that inflation has entered a stable range, with no risk of large fluctuations. The stability of inflation creates conditions for a gradual easing of policies, making the possibility of future interest rate cuts more clear, which is undoubtedly a positive signal for market sentiment and liquidity.

From a technical perspective, the index is currently approaching the 120-day moving average, which is an important support level. The 120-day moving average serves as a key indicator for medium to long-term trends and usually provides strong support. At this critical moment, actively seizing opportunities may be wiser than passively waiting. After all, only when the market gradually warms up can investors gain more operational space and potential returns.

Another factor worth noting is the recent flow of funds. Observations show that large amounts of capital are continuously entering the market to buy at the bottom. This behavior not only reflects professional investors' recognition of the current market valuation but also injects confidence into the market, laying the foundation for a possible rebound.

Considering the stability of interest rate cut expectations, the signals of the index's pullback to key support levels, and the ongoing inflow of large funds, these three factors overlap and form the main basis for predicting a possible rebound in the market next week.

Of course, the market is ever-changing, and investors need to closely monitor market fluctuations and adjust their investment strategies at the appropriate time. Staying patient and waiting for opportunities, while also managing risks, is the wise way to invest.