Hexun Investment Advisor Qi Junqiang: Increased volume pushes prices higher, then pulls back; don't be pessimistic about tomorrow!

The index saw big volume and surged higher today but then pulled back. Is it all over tomorrow? According to Hexun Investment Advisory’s Qijunqiang, tomorrow isn’t something to be pessimistic about. First, today’s rally in the early session was on shrinking volume—meaning retail investors didn’t chase the highs to buy. During the decline, volume increased; that instead indicates shaky positions and panic selling and cutting losses. According to game theory, once retail investors cut their losses, it’s easier for the market to rebound. Second, today’s close was a “volume ice point”—with heavy volume. If there is no major negative catalyst in the global markets, then tomorrow’s sentiment is likely to move toward repair. Third, today the futures main contract was actually bought slightly. So, technically for the short term, 3880 is expected to provide support, and above 3950 there is resistance.

(Editor: Wang Gang HF004)

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