Three Factors Determine That Bottom Up Will Be A Protracted War.

From the short-term trend, we should say that there is still a lot of kinetic energy in the A share market.

However, relatively limited volume and chaotic hot spots indicate that the real mainstream capital has not entered the market.

Even though it looks like the stock index is trying to get out of the bottom, the future is expected due to the limited market space and uncertainty.

The stock index tested 2700 points on the Shanghai Composite Index several times, but they all succeeded in keeping up, which constituted a relatively standard bottoming trend in form. This means that there will be no significant drop in the market outlook. On the contrary, it is expected that there will be a decent rise. The prevailing view of investors in the future market is that the market is going to be bottoming up and the market should bottom up.

The question is, what form will the market take to build the bottom?

It is faster to build a bottom line, then start the rising market, or spend a relatively long time, slowly build a more solid medium term bottom, and on this basis gradually upward?

From the perspective of market sentiment, investors certainly hope to succeed in the short term, thereby providing a boost to the market.

First of all, the stock market crash in the early period has internal basis, not the so-called "wrong killing".

At present

Secondly, the market environment in June is still grim.

The central bank did not announce interest rate hike during the long period of the Dragon Boat Festival, but that does not mean that interest rates will not rise this month.

In addition, it is widely expected that CPI will remain relatively high in May, and that inflation will be difficult to control in the face of inflationary pressures.

At the right time in June, the central bank is expected to introduce new regulatory policies.

This also determines that the bottoming of the stock market will take place under the background of the constant introduction of regulatory policies, so it will take a long time.

Finally, the tight market condition of the capital market determines the bottom of the current round or for a longer time.

Due to the lack of sufficient funds, the stock market has been shrinking, and the offensive has been weak.

The problem is that one of the prerequisites for future improvements is that investors' expectations of regulation are beginning to change. They believe that the tightening policy is basically over, and will not tighten even if it does not relax immediately.

The premise is that two, compared to other investment varieties, the value of long-term investment in stocks is more obvious.

Assuming that the overall valuation level of stocks will not drop further, it is necessary to observe whether the price of other investment products will rise substantially.

The three of the premise is the relative clarity of the stock market policy.

Many funds have not entered the stock market, but they choose to look on the sidelines.

Whether the expansion of the new three boards or the launch of the "international board" is a change in the original market structure, and has a far-reaching impact.

If there is still much uncertainty in this area, it is hard to imagine that the peripheral capital will enter the stock market in large numbers.

This has made the stock market bottom market relatively long.