Next Monday, the US stock market is likely to continue the "bath" trend; understanding this wave of operations is key!

Did the wave of the stock market crash on Friday scare a lot of people into a cold sweat? During the session, the sentiment plummeted to the bottom, and many thought it was going to be a "crash start". In fact, it resembles a "complete cleanup" orchestrated by the institutions - a washout!
You think that institutions are aggressively selling at key levels just to scare us small retail investors? Clearly, they are targeting those "floating funds" from earlier: they are forcing those short-term traders who are uncertain to cut their losses and exit, cleaning up the market. Many people didn't notice that while Friday's drop was severe, although the trading volume increased, the net outflow of main funds wasn't as exaggerated. This indicates that most of the selling pressure is coming from panicked retail investors, not from real capital fleeing collectively.
So next Monday, the US stock market is very likely to continue this trend of oscillating downwards, going through a "cleaning up" process. After all, institutions don't just wash the market once, do they? What they want is "clean" chips, and they will wait until everyone is scared and has sold off enough before slowly starting to push the market up.
Furthermore, the recent news is quite chaotic: Trump's trade remarks, the rising U.S. Treasury yields, and the market's speculation on whether the Federal Reserve will cut interest rates by the end of the year make short-term funds hesitant to take positions easily, which has given institutions another opportunity to wash up the market.
But on the flip side, this kind of consolidation is actually "paving the way" for the subsequent rise. As long as there isn't a panic sell-off with a significant drop during the trading, we might see bottom-buying signals emerge in the latter half of next week. Remember, real crashes never give you a heads up, but the rhythm of a major player’s consolidation is actually quite obvious.
Finally, let's highlight three key points that we should remember:
1. The probability of continuing to wash out next Monday is not small, don't be shaken and confused by the volatility;
2. The real risk is not the drop, but you panicking and getting washed out, handing over your chips at the low point;
3. The closer we get to a panic point, the more we need to stay calm and observe, and not recklessly cut positions.
The market has always been about "cleaning up before the rise." There's no need to panic now; just keep an eye on the key levels and watch the show—let's see how long this "washout performance" by the institutions will last!