Reversal?

$Shanghai Composite Index sh000001$ The market moved quite clearly today — index-driven and group-driven rallies are back, with structural rotation being the main theme. Moreover, this rhythm is highly similar to the market behavior during the previous US-Iran tension, meaning A-shares are slowly returning to their old path, with the impact of external news weakening.

Don't take Trump's "situation over" statement too seriously regarding whether to believe it or not. Now, regardless of whether the news circulating outside is about easing or pressure, its impact on financial market sentiment is much smaller than it was in March. Global capital is gradually becoming more rational, no longer reacting with panic. So, pay attention to external events as needed, but don't let them disrupt our own rhythm. Look, Japanese and Korean stock indices are nearing new highs, the Nasdaq is also rebounding, and the A-share ChiNext board has already hit a new high driven by hard tech — money has been positioned ahead of time, and the market trend says it all.

What's next for A-shares? I think the core points are as follows:

The ChiNext board has rallied for several consecutive days. Today's high-open and low-close is normal; it rose too fast, and a technical pullback is needed, which is not a bad thing.

The main board has rebounded from 3,794 points to above 4,000 points, with funds already entering early to position themselves. After the positive news materializes, the index is likely to fluctuate around the 60-day moving average. It's hard to see new lows in the short term, but don't expect a sharp surge either. The Shanghai Composite has currently stabilized at the 4,020-point platform. Next is the 4,020–4,160 fluctuation range. If trading volume can continue to increase later, then after consolidating support at 4,020, the index has a chance to test the upper bound of the range at 4,160.

Both the ChiNext and Shenzhen Component Index have hit four-year highs, also facing adjustment needs. After several days of consecutive gains, it's not suitable to chase the rally in the short term. In terms of operation, waiting for opportunities to buy on dips is more comfortable.

Sectors are still rotating. With the US-Iran situation cooling down, expectations for energy stocks have already been realized. Funds are likely to continue clustering in hard tech.

This round of positive news has been largely priced in. The market is entering a window period waiting for the next round of news, with both bulls and bears being relatively cautious.

Sector-wise:

CPO, Computing Power Hardware
Today, leading stocks like Zhongji and Xinyisheng surged and then retreated, with short-term divergence significantly increasing. It's too early to call it over, but in the short term, really don't chase the highs anymore; chips need to settle. Directions like domestic computing power and computing power leasing are still worth watching, as there are further catalyst expectations ahead.

Commercial Space
Continued performance today. Policy expectations and industry attention are heating up.

Electric Power
Today's market rotation reached the power sector, which has been adjusting for a while. As a foundational configuration for AI, the power sector can continue to be monitored. The summer heat wave triggers a rally every year; just keep that in mind.

In summary, it's still the same sentence from this morning: The market trend has most likely reversed, shifting from defense to offense.