Strong Shocks Next Week, Steady Growth Of Gem

On Friday, the major stock indexes showed a narrow contraction. The major indexes were competing for the 5 day moving average on Thursday and Friday. The short term Shanghai Composite Index, Shenzhen Shenzhen index and small and medium-sized board have recovered the average of 10,20,60120 days. In the stock market index, many average lines are entangled in 3500-3600 regions, and the market is still in the market for further adjustment.

Once again, back to 3450-3600 of the box shock.

Judging from the MACD index, since the DIFF index broke through DEA last Friday, the red pillar of the index has been stretched again after a long period of time, which shows that the rising energy is insufficient. Now the stock index is still in the middle track of the brin line 3550, and the market outlook is temporarily in a strong shock adjustment.

From the perspective of capital, the interest rate downtrend in the next 1-2 years will reduce the yield of all kinds of fixed income products. A large number of funds, especially institutional investors, need to have assets. In the future, there will be more than tens of billions of funds going into the stock market. The trend of incremental capital entering the market will continue to exist in the short term of assets shortage. More money will flow from social mobility, and the logic of asset allocation will be reduced, so as to create a better environment for A share market investment.

Under the background of economic weakness, the interest rate downtrend and rigid payment will break down in the future. Large asset allocation institutions such as banks can not meet the demand of fixed income assets matching risk returns, and a large amount of funds will passively push up asset prices such as stock market.

A daily turnover of less than 400 billion will allow stocks to continue to make further structural differentiation.

Short term stock index stands 3570 points.

Stand firm for 2770 points, grasp the structural market, or reduce the positions or short positions.

Overall, the short listed Shanghai stock index market is temporarily competing for the 3450-3600 point platform as a new starting point to digest the annual line.

But the Shanghai Stock Index 3600 points -4000 or so is the strong pressure at the bottom of the previous box and the hold up plate, which takes time to digest. The 3700-4200 points and the first line of the Shanghai stock index are facing the gap of the first 1000 stock limit and the important pressure of the bottom of the box. The stock market will continue to rebound if it continues to rebound, and the volume will continue to enlarge to more than 450 billion.

Related links:

"Since October 9th, the number of continuous negative has not exceeded two even Yin. Based on this operation rule, today's red Friday is a big probability event."

Last Friday, the market was verified by Lao Wan, and the performance of the Christmas red Friday market was also interpreted. This also meant that last week, the big market red ended, with a weekly gain of 1.37%, and the weekly line form recorded the first two Lian Yang trend since November.

What's wrong is that the market index has not yet broken through the shock box, and the trend is still fluctuating. The annual line has become a hard nut to crack since the bottom of the 2850 points in August 26th. As in the early December 22nd, Bowen's "big market upside down resistance to three mountains" put forward the viewpoint of Lao Wan: "whether psychological or technical level, the annual line is still a strong resistance to uplink. Therefore, cautiously optimistic attitude to deal with the market is a wise move. It is advisable for the short term to bag in time for safety, so as to avoid making profits and become a cloud.

In December 23rd, the market index rose to 3684 points, eating the 3678 high point in November 17th, the highest since August 26th. However, the main force still can not conquer the resistance of the annual line and the 3700 integer mark.

Next week is the end of the December market and the end of the week in 2015. How will the market be interpreted next week? Lao Wan believes that based on the characteristics of the box movements, there will be inertia in the market next week. The key to the trend of next week's market is the trend of the banking sector. That is to say, once the banking sector is showing a strong upward trend next week, the market will explode.